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.
Can you have your house and spend it too?
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.
Enjoy Michael Mullany’s review of the Gartner Hype Cycle, with all the things tech predictors got right and all the things they got wrong: “we’re terrible at making predictions.” Lesson 6: Some technologies keep receding into the future There are some notable technologies that recur on the Hype Cycle and every time they appear they […]
Why we secretly love our cords. Tamara Warren: There’s a certain security in the cord. It’s the idea of connection, perhaps even dating back to our days in the womb. … A battery, no matter how sophisticated, is fleeting. When we have our cords with us, we are in constant pursuit of power, even when […]
The classic beatbox – not an expensive clone or a collection of cleverly-tweaked samples – is back. Roland’s TR-08 directly models the original machine’s analog circuits to recreate its sound as accurately as possible with modern digital technology, and joins revived versions of the TR-909[Amazon] and TB-202[Amazon] in the company’s lineup of boutique boxes. The […]
The Pry.Me Bottle Opener holds tens of thousands of times its own weight, and you can pick one up now from the Boing Boing Store.This remarkable keychain is considerably smaller than any of your keys, but don’t let that fool you: it can easily open any bottle, and could even tow a trailer full of […]
Guaranteeing your privacy online goes way beyond checking the “Do Not Track” option in your browser’s settings. To ensure that your internet activity is totally hidden from Internet Service Providers, advertisers, and other prying eyes, take a look at Windscribe’s VPN protection. It usually costs $7.50 per month, but you can get a 3-year subscription […]
This project management bundle will help you get organized and learn how to lead a team to success. You can pay what you want for these five courses when you pick them up from the Boing Boing Store.To help you become an invaluable asset for your company, this bundle includes a curated collection of professional […]