Saturday, July 11, 2009

Google Adsense May Need SEC Regulation

Google (GOOG) and its all powerful search engine adsense program may be a regulatory Trojan Horse. A good friend was checking out my site and notices a Google Ad and gives it a click. The ad is promising something like 450% returns, if, you do as they say. Somehow these financial fairy tales still resonate with gullible investors.

Google needs to think. Regulators need to think. The algorithms driving these ad’s may inadvertently enable criminal activity. The black box nature allows predators to pick off investors who are the most vulnerable.

Google I am sure will claim that they are screening the ads. But if I was Google’s lawyer I would be reviewing the process that allows a promise of 450% returns to be offered in a programmed manner to probable viewers who have fit a predictive model of Google’s construct. That must be accomplice style behaviour.

If I was a SEC regulator looking to avoid tomorrows financial mess I would investigate how Google is actually running this program. Can you imagine, Google will need to explain the algorithm to someone outside. That’s just too juicy.

There can be no doubt that the Google which says “do no evil” did not wake up in the morning and say lets screw Western Civilization. But they seem to be leaving the back door open and helping drive the get away car without realizing it.

Thanks Bob.