A Complex System View on the Financial and Economic Crisis

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In summary Each excess is partially “solved” by the subsequent excess... leading to a succession of -unsustainable wealth growth -instabilities The present crisis+recession is the consolidation after this series of unsustainable excesses. One could conclude that the extraordinary severity of this crisis is not going to be solved by the same of implicit or explicit “bubble thinking”. "The problems that we have created cannot be solved at the level of thinking that created them." Albert Einstein 42
Recession-Plagued Nation Demands New Bubble To Invest In The Onion, JULY 14, 2008 | ISSUE 44•29 (satirical american journal) "Every American family deserves a false sense of security," said Chris Reppto, a risk analyst for Citigroup in New York. "Once we have a bubble to provide a fragile foundation, we can begin building pyramid scheme on top of pyramid scheme, and before we know it, the financial situation will return to normal." 43
Page 1 and 2: A Complex
Page 3: Canada Currency: Canadian dollars 3
Page 6 and 7: Standard claim: The current financi
Page 8 and 9: The illusionary “PERPETUAL MONEY
Page 10 and 11: A 15y History of the 2008 crisis
Page 12 and 13: •1995-2000: growing divergence be
Page 14 and 15: Foreign capital inflow 14
Page 18 and 19: Causal slaving of the US Treasury B
Page 20 and 21: Causal Slaving of the U.S. Treasury
Page 22 and 23: Real-estate bubbles 22
Page 24 and 25: Real-estate in the UK 24
Page 26 and 27: (2005) And this with the median hou
Page 28 and 29: B-F Over the past decade and a half
Page 33 and 34: Key Players and Frictions in Subpri
Page 35 and 36: Estimated assets and market positio
Page 39 and 40: 2006-2008 Oil bubble Speculation vs
Page 41: 41 Source: R. Woodard (FCO, ETH Zur
Page 45 and 46: Separation of financial and credit
Page 47 and 48: Stress drop (coupling strength) 10
Page 49 and 50: • Fundamental error: “perpetual
Page 51: Main Messages • Do excesses exist

A Complex System View on the Financial and Economic Crisis

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