Singularly Complex. The Catch with Hybrid Finance
"Over the last few years, a small group of experts have built a parallel description of financial markets that go much beyond the orthodox dogma taught in a typical MBA finance course. These researchers have uncovered a very rich set of analogies with ecological and other biological systems..
the words that drew my attention .. set of analogies .. that .. ecological, biological, financial systems .. and certainly these systems are not the only that merit inclusion but other systems too .. no matter their origin ..
...which have helped us understand the mechanism behind financial crashes—both Flash and the more prolonged purges—and given us a comprehensive notion of the global human/machine hybrid financial system which is, to use a very bold word, living.
...human/machine hybrid financial systems .. that are living .. the concept 'living' acquires new attributes .. surpasses its context .. its contextual limits .. beyond the confines of context ..
Building models and theories that cut across disciplinary boundaries, and through extensive computational modeling, these researchers, including early pioneers of chaos theory such as Robert May and Doyne Farmer, have presented us with a narrative about the future of finance that is, again to use a bold word, alarming.
cut across disciplinary boundaries .. by discipline ..improvised context .. cutting across ..boundaries ... chaos theory enabled .. chaos-sprung .. directed by ..
Recognizing that complex systems display unexpected and un-programmed features, these researchers ..
complex systems display .. un-programmed features .. un-programmed .. the scale of the conclusions drawn .. by that remark .. its programmed attribute .. the deterministic overtures implied, contained within .. the ..unexpected.. dimension .. the failure of the control intended .. as the control is programmed, determined by it .. assumed, as its .. programmed nature, implies .. expected outcomes ..
the amount of complexity .. if it can be assessed and measured .. beyond which the 'expected' attribute of the machine- or high-frequency algorithmic programs ..surpass 'expectancy' .. giving rise to ..unexpected outcomes .. un-programmed
(much like the fictional Dr. Ian Malcolm of Jurassic Park) have argued that introducing financial innovations of increasing complexity (much of which is machine- or high-frequency algorithmically driven) is, more than ever before, making the global financial network fragile and prone to fractures both big and small."
.. global financial network .. prone to fractures both big and small .. as if that would merit .. attention .. in the grander scheme of things .. a triviality obscuring the underlying essence ..of the finding ..
a hint of a global living brain .. complexity induced .. unexpected and un-programmed features .. emergence at bay ..