Charlie Alfred’s Weblog

March 21, 2009

More Conceptual Distance

Filed under: Uncategorized — charliealfred @ 1:08 pm

Most of us have watched our retirement portfolios and children’s college funds shrink by 50% during the past six months.  As painful as this is, there are lessons to be taken away.  No, I’m not referring to the people who want to lynch those who received million dollar bonuses from AIG.  And I’m not even referring to the people who now want to regulate anything that moves.

No, I’m talking to the people who want to understand some of the fundamental causes, and think about how little understanding of the risks caused by the real underlying factors actually made it through the “split pea soup” we happily call communication in our day and age.  How will the world function when information that must be conveyed won’t fit in a cell phone text message?”  Do we coast merrily along hoping that our surface-level assumptions hold water?  Or do we cross our fingers and hope that the other guy has the answers (then point an appropriate finger when things go wrong)?

I don’t profess to know the answer here.  Too much depends on the fickleness of human behavior.  But I think that the excellent March 2008 article in Wired, written by Felix Salmon, is a great place to start, and I hope that the article that appears in https://charliealfred.wordpress.com/conceptual-distance-and-the-2008-market-meltdown/ helps to frame it properly.

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1 Comment

  1. Hello,
    charliealfred.wordpress.com to GoogleReader!

    Comment by GlenStef — April 20, 2009 @ 4:40 am


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