Coping With Turbulence: More Theories and Math?

Isn’t it time to review our theories on economics, to see them in a radically different light? What lessons are we learning from this and otherĀ  crises, if any at all? In the 1930 around 10000 banks have defaulted. The total amount of assets involved was equivalent to approximately 100 billion of today’s dollars. In…

What Cannot be Modeled Should Not be Modeled

Ludwig Wittgenstein sustained that “what cannot be debated should not be debated”. We say that what cannot be modeled should not be modeled. Otherwise one faces making massive investments with no tangible return. Based on our current understanding of physics and using our contemporary mathematics certain things are “impossible to model”. Therefore, we should not…

In Math We Trust. That is Precisely the Problem.

The economy is a dynamic system which is far too complex for us to understand. Human nature is extremely complex and billions of irrational humans form the economy. How can such a system ever be thought to be inherently stable as many prominent economists have sustained? But this system, like every other natural or man-made…

Solving Extreme Problems

Extreme problems are very large-scale multi-disciplinary problems, involving thousands of variables and which cannot be solved using conventional technology. In such situations, it is impossible to determine the cause of the problem not only because of its sheer size but, most importantly, because it is frequently perceived through conventional eyes and distorted by narrow and…