Europa

How to Best Breakup The Eurozone?

(Blog written in May 2013) The Eurozone is in an extremely fragile situation with a one-star resilience rating for the past year and a half. The system is reaching critical complexity very quickly and inexorably (current complexity is approximately 390, the critical value at which breakup is inevitable is around 426). First of all, highly…

bigstock_Fragile_Stamp_Vector_3604523

The Derivatives Time-Bomb

Warren Buffet said in 2003 that the derivatives market was “devised by madmen” and a “weapon of mass destruction”. Global GDP stands at $69.4 trillion while the derivatives market is today over $700 trillion. What this means is that the financial industry has run up phantom paper debts worth more than ten times what the…

moneyburning

US Markets – A Bubble Approaching?

Assetdyne analyzes stock market data on a fortnightly basis, measuring and tracking the complexity and resilience of the major US indices. Results are reported here, where it is possible to navigate interactive Complexity Maps of the said indices. We know that an evolving system, such as a biosphere, a society or an economy, becomes progressively…

Crisis_Enablers

Why Regulating Ratings Won’t Fix the Problem

Much has been written about the global economic crisis, its causes and its consequences. We could say that to a large extent we actually understand what has happened and why. The point, however, is to look to the future and to learn from past mistakes. In particular, we would all like to understand how to…