In MAKE Vol. 15, George Dyson, who writes the Retrospect column, looked at the mortgage meltdown.
The roots of the current financial meltdown can be found in John von Neumann’s model of general economic equilibrium, first developed in 1932. Von Neumann elucidated the behavior of an expanding, autocatalytic economy where “goods are produced not only from ‘natural factors of production,’ but ... from each other,” and he proved the coexistence of equilibrium and expansion using the saddle-point topology of convex sets. Some of his assumptions – such as that “the natural factors of production, including labour, can be expanded in unlimited quantities” and that “all income in excess of necessities of life will be reinvested” – appeared unrealistic to others at the time, less so now that Moore’s Law and the zero-cost replication of information are driving the economy of today. Other assumptions, such as an invariant financial clock cycle, are conservative under the conditions now in play.
Von Neumann, who made seminal contributions to digital computing, left a number of distinct monuments to his abbreviated career, among them his Theory of Games and Economic Behavior (with Oskar Morgenstern) and his Theory of Self-Reproducing Automata (with Arthur Burks). Synthesis between these two regimes is now advancing so quickly that no unified theory of the economics of self-reproducing systems has been able to keep up. Periodic instability should come as no surprise. We may be on the surface of a balloon. Or in the saddle of a dynamic equilibrium – we hope.
The office I work in is full of things old people buy to make themselves feel young again. I can honestly say that our awesome new toy, The Swagtron T3 Hoverboard, makes me feel very, very old. I’ll explain why later. Swagtron T3 Pros There’s no way to overcharge the battery and that means no […]
One thing that’s consistent among amateur pool players is that they unknowingly stand up during their shots. Just as in golf, pool players need to keep their heads down and stay still after they shoot in order to hit straight. The DIGICUE helps keep shots consistent by letting you know every time you’ve had extra […]
A leaked memo from Apple CEO Tim Cook to his staff explaining why he met with Donald Trump — a guy who called Apple traitors for refusing to defeat their own security — explains the rationale: “tax reform.”
Looking to upgrade your weekend? Here are three randomly awesome products on my mind this week.#3 FRESHeBUDS Pro Magnetic Bluetooth EarbudsAs more and more phones and gadgets switch to Bluetooth-only compatibility, you’ll need to get Bluetooth headphones like the rest of us. I’ve been super impressed with these affordable magnetic headphones. Pull the magnetic earbuds apart to auto-connect […]
Traditional folding wallets are designed for paper bills—but these days, carrying cash is rarely a necessity. More often than not, I don’t carry cash at all. This Bogui Clik Wallet is the best answer I’ve found for avoiding the hassle of those tight-fitting credit card pockets.This attractive, minimalist wallet features a protective lip, so my cards don’t […]
Using my iPhone while it’s charging is always a hassle. With tucked-away outlets and the meager length of included lightning cables, comfortable scrolling while plugged in is annoying. These 10-Ft MFi-Certified Lightning Cables are super convenient and probably the best iPhone accessory purchase I’ve made.At over three times the length of normal cables, these reach anywhere you […]