Mandelbrot Beats Economics in Fathoming Markets: Mark Buchanan
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Dec. 6 (Bloomberg) -- The possible collapse of the Europeanmonetary union, at least in its current form, brings home thetruth that there’s little in economics that is certain. We’reagain “thinking the unthinkable,” as we were a few years agowhen we suddenly realized that financial engineering hadn’tbanished financial crises, and that 70 years of relativestability since the Great Depression didn’t guarantee a thing.
It seems that we’re complete suckers for the illusion ofcertainty and the seeming unlikelihood of the unthinkable, eventhough financial and economic history is one long string ofcrises. This time always seems different, until it turns out notto be.