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.
Ok, it’s not just solar powered. It’s also an anti-theft, waterproof marvel that keeps my phone’s power bar from ever getting into the red.Sure the idea seems obvious now – tuck a gigantic solar powered battery pack into an exposed slot and turn the wearer into a walking energy harvester. Simple maybe, but I didn’t […]
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 […]
Although there will never be a consensus about the best way to make coffee, any coffee connoisseur will agree that controlling the grind of your beans and balancing water temperature are the keys to a tasty cup. Since your plastic coffee pot doesn’t really allow for that kind of customization, going back to the French […]
Not all hackers are malicious information thieves—white-hat ethical hackers work with technology companies to ensure the security of their computer systems and user data. With all of today’s high-profile data breaches, ethical hackers are in considerable demand. To learn these critical skills and break into the high-paying cyber security field, try taking the courses in this […]
Making people aware of goods and services in the digital age requires an array of new strategies from social media and email to number-crunching tools like Google Analytics. To get a handle on the techniques used to capture attention and convert traffic into dollars in a crowded online environment, the Full-Stack Marketer Bundle offers 22 hours of training to get […]