Friday, March 06, 2009

A telecom Engineer explaisn the credit crunch

1. black swan events are just rare events in a heavy tailed self similar arrival process - using large deviation theory from admission control algorithms is fine for explaining this.

2. instability and cascades happen when you don't implement feedback controls and damping (regulation, in old steam engine terms)

employing both of these would be necessary and sufficient for non divergent, stable, non cascading markets.

people that don't get this should be fired.

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misery me, there is a floccipaucinihilipilification (*) of chronsynclastic infundibuli in these parts and I must therefore refer you to frank zappa instead, and go home