The Role of Stewards and Statesmen is to Maintain the integrity of the System/Game...

Modular-Finance ~ in ~ Motion™...

Modular-Finance is Reflexive and Utilizes Game Theory, ( Complexity Theory and Evolution Theory) for desision Making ( one move determines/influences the next Move)  -  and Multivarate Calculus...

What is Modularity?

Modularity is a structural fact.

The Future of Finance

Institutional Investor Mag
September 2012


" ACCORDING TO MERRIAM WEBSTER'S. FINANCE IS "THE SYSTEM THAT includes the circulation of money, the granting of credit, the making of investments

Modular-Finance~in~Motion...™

Moulding the future of economics (Image: Matt Murphy/Handsome Frank)

THE GLOBAL financial crisis of 2008 took the world by surprise. Few mainstream economists saw it coming. Most were blind even to the possibility of such a catastrophic collapse. Since then, they have failed to agree on the interventions required to fix it. But it’s not just the crash: there is a growing feeling that orthodox economics can’t provide the answers to our most pressing problems, such as why inequality is spiralling. No wonder there’s talk of revolution.

Earlier this year, several dozen quiet radicals met in a boxy red building on the outskirts of Frankfurt, Germany, to plot just that. The stated aim of this Ernst Strüngmann Forum at the Frankfurt Institute for Advanced Studies was to create “a new synthesis for economics”. But the most zealous of the participants – an unlikely alliance of economists ...

Leader: “Is it time to accept that economic crashes are inevitable?”

Astrology

Is it time to accept that economic crashes are inevitable?

“THE only function of economic forecasting is to make astrology look respectable.” Stanford University economist Ezra Solomon is far from the only person to make this comparison – and the two activities are by some measures quite similar.

Both attempt to uncover patterns in human activity using models of dubious worth, both have proven incapable of reliably predicting the future, both are widely derided – and both are decidedly persistent.

Scientists have long sought to impose their own order on this messy sphere. Physicists have offered up their insights, which have been selectively adopted by economists – the guiding principle being that the models that have caught on tend to be simple, rather than accurate.

Now biologists want a go, with models incorporating swarming, neuroscience and psychology (see “After the crash, can biologists fix economics?“). Their complexities may well prove too unwieldy for them to gain traction.

It’s comforting to imagine that economic disasters can be avoided through smarter forecasting. But if the latest efforts reveal that this is still impossible, it would be better to accept this inevitability than deny it. Otherwise forecasting really will be no more credible than astrology.

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"THE only function of economic forecasting is to make astrology look respectable."

~ Mfim ~

In Modular-Finance, the past is foreign country, they do things differently there...

The Power of Modularity

Hierarchy is a way of limiting complexity in the interests of both stability and evolvability. Systems structured in this way possess a basic, fundamental, competitive simplicity...

Modern Portfolio Theory is a special case or subset of Modular-Portfolio Theory...

What makes Modular-Finance intelligent is the ablility to adapt to change...