Sort out solution for the slump

Today news cut:

Revenge of the glut” Paul Krugman, The New York Times

Photo: Jim Krantz/Gallery Stock formula.jpg

People believe to find the solution when focus at the cause. So, there are few threads we can look up to.

Paul Krugman lately said it is a bigger slump out there about saving and investment, and he sees it as “revenge of the glut”. However, some others has a different view that, the blame should be fall to the Gaussian copula function, which is believed to be the formula lead to the great turmoil we all are taking part in. This simple and elegant mathematical formula was the master piece of Mr. David X. Li. Some said that he might probably win the Nobel Prize if the booming continues.

But did any weight the risk before get into it or being too naïve believing that the booming will continue forever so that they would no need to face the consequences? This is like playing the musical chair game scenario. People believe they are always lucky enough to have the ball falling into their hands before the music stop, let the followers eat the consequence.

That is ethic the world missed.

It does not the unique phonon in financial sector but also has been seen in environmental protection, food safety as well as every aspect. 

Do not know the evil you let go will some day find you?

Related readings:

  • Recipe for Disaster: The Formula That Killed Wall Street
  • 大陸留學生係海嘯元凶,雙語 Incoherent Thoughts

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