Some “Silver Lining”

We temporarily interrupt the ‘econolypse’ to highlight a fascinating vid from TED. In this talk Jaun Enriquez lays out a bright future against our current dire straits. It does remind me that there have been times when both as a nation and as a civilization, we have faced daunting circumstances and yet ultimately advanced. Painful as current challenges are, with skillful navigation, I remain hopeful that we shall ‘thread our way through the needle’ once again.

What I especially appreciate about Juan’s talk is his humor and the way he grasps and acknowledges the gravity of the current market fundamentals and yet is able to lay out a pathway to a hopeful future. Skillful communicator.(See vid here…)


Equations don’t kill markets…

… apparently, bankers with equations kill markets (see article here.)

Amazing story of one equation that took on a life of its own. Why did this happen when the mathematician turned investment banker himself did not intend its broad, reckless use? May I suggest it is due to the enormous compensation incentives to create transactions – ostensibly enabled by this equation (that old compensation scheme problem again… sigh).

I think it’s amazing that we found a “butterfly’s wings” that gave rise to (at least a good part of) this storm.

Thanks to Paul Kedrosky of Infectious Greed for the links… the scope of his blog is a whirlwind of fascinating stuff…

Humpty and his Dumpty

“History and societies to not crawl. They make jumps. They go from fracture to fracture, with a few vibrations in between.”

Nassim Taleb- The Black Swan

What we see unfolding before us is a fracture in history. When the self organized system is pushed beyond its boundary conditions into chaos and (hopefully) reorganization. I saw a Bloomberg article mentioning that $7.4 trillion had been pumped into the economic system during the course of this firefight… The shock front of this economic blast is sure to alter our course. It remains to be seen what the magnitude and direction this historical vector will take.

Watch for bold moves by competitors and rivals to US power in the coming years. They smell blood and fear and the world really can be quite a dangerous place.