L. Venkata Subramaniam has left a new comment on your post "When complex systems evolve over time the paths th...":
I think nobody took mathematical modeling seriously so they built very simplistic models with bad assumptions and bad data. I dont think the current financial crisis is the result of bad models, infact it is the result of no models. Posted by L. Venkata Subramaniam to Savitri Era Learning Forum at 12:48 AM, December 31, 2008 12:58 PM
R. Venkata Subramani has left a new comment on your post "When complex systems evolve over time the paths th...":
Mathematical models or no mathematical models - the present crisis is just on account of too much greed and throwing all common sense to winds. What else can you call the so called Credit Default Swaps on Fixed income securities - when the total bond size is 25 trillion USD and the notional value of CDS is 63 trillion USD? Do you call this protection or pure gambling? Posted by R. Venkata Subramani to Savitri Era Learning Forum at 11:24 AM, December 31, 2008
In my possibly overdogmatic view, economics is most useful when its models are relatively simple and intuitive. We've run out of new models which are simple and intuitive. So the theory game is over. The standard, old data sets have been data mined to death. We're now on to the "can you build/create your own data set?" game. That game can and will last for a long time; in some ways it will favor go-getter extroverts just as the theory game favored introverts.
I don't yet see that there is a new game in town. My preferred reform of economics involves more history and anthropology, I might add.
Allen Greenspan was a adherent to the philosophy of selfish egoism of Ayn Rand, which had little enough to do with the self interest and moral philosophy of Adam Smith.