“If Obama would listen, I would say disclose financial data. I would not talk about genomics. I would say actually for several years before the financial crisis took place, several of my colleagues were going around and said you guys have no idea how much dependency there is between the banks and it’s all secret. If something would happen here, everything will go down like a domino. I was listening to them, but not taking it too seriously, not knowing much about it. And then, of course, we saw it unfolding. All these secret bills, all these secret dependencies, all these loans and things that we don’t know anything about. If we ever want to turn the financial system into a predictable, monitorable system, there has to be massive disclosure. And that is not happening, even now after the financial crisis. We’re poised for another one and another one and another one, because there’s nobody who can come along and say this is a problem because we don’t know what the problem is, because we don’t have the data. We can’t model it, we can’t understand it, we can’t describe it.” ALBERT-LÁSZLÓ BARABÁSI.

Source: Edge Video

“massive disclosure” is necessary but not enough an action. We do know what the problem is. The financial data are secret like all data where there is a fraud. And we can model it. Insert in a financial model the human nature, the trend to redistribute the wealth by any means, and you will have a working model of our society. No common good and something like common morality – for most participants.

On a broader view we have controllable non-linear automatic control system with negative and  positive feedbacks and changing parameters. We know rather good when the system falls into uttermost state due to positive feedback (contemporary state), we have good math for stable and controlled output or spontaneous oscillations. We have enough knowledge about how to avoid the repetition of such a state we call ‘financial crisis’. IV.


About basicrulesoflife

Year 1935. Interests: Contemporary society problems, quality of life, happiness, understanding and changing ourselves - everything based on scientific evidence.
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