Wednesday, December 2, 2015
Thursday, November 12, 2015
From the Big Bang to the Fall of the House of Lehman...
the Rise and Fall of Slothosaurus Rex....
It was the Best of Times...It was the Worst of Times...
It was the Best of Times...It was the Worst of Times...
Friday, November 6, 2015
Platos Cave and the Flat Earth Society...
"Before Copernicus, mankind knew that the earth sat motionless at the very center of the universe with the sun and stars turning around it. After Copernicus, we knew the earth was just a minor planet orbiting an unremarkable star. He was the first of the scientific revolutionaries, but he was not the last. He has been followed by a long and glorious list of imitators. These copycat revolutionaries borrowed his scientific methods and to a surprising degree also used very similar imaginative tricks to turn their own fields into sciences.
It is worth pondering what Copernicus did and what he did not do. Copernicus did not make any new astronomical observations of significance. His breakthrough did not rely on new mathematics or other astronomical techniques. He did not produce a more accurate astronomical model than the previous Ptolemaic system. He provided no experimental demonstration that his model was superior to the Ptolemaic system.
All that Copernicus did was to describe the universe in a simpler, more logical way. Copernicus provided conceptual efficiency. His triumph was in the elegance of his model, which allowed subsequent workers to think more around it.
Wednesday, October 28, 2015
A New Paradigm....
These ideas are already in Play at the Academic Institutional Level....unfortunately Financial Planning and the retail investor are usually 10 -20 years behind...
Equilibrium Economics vs non-equilibrium Economics
"Some people claim that this economics is a special case of equilibrium economics, but actually the reverse is true. Equilibrium is a special case of non-equilibrium and hence complexity economics."
Modern Finance is a Special case of Modular-Finance
Calculus is a special case of Multivarate Calculus...
Classical Probability Theory is a Special Case of Quantum Probability Theory...
as equilibrium theory theory is a special case on non- equilibrium Theory...
Sunday, October 11, 2015
Thursday, September 17, 2015
The Uncertainty Principle
The “uncertainty principle” is one of the major tenets of quantum theory, and human life is rife with uncertainty. http://t.co/ieJfLeHdtF
— MainandWall™ (@MainandWall) September 17, 2015
Simplicity on the other side of Complexity
"For the simplicity that lies this side of complexity, I would not give a fig, but for the simplicity that lies on the other side of complexity, I would give my life."
~Oliver Wendell Holmes
"make everything as simple as possible, but not simpler"
~ Albert Einstein
Modern finance is simplicity on this side of complexity...
~Oliver Wendell Holmes
"make everything as simple as possible, but not simpler"
~ Albert Einstein
Modern finance is simplicity on this side of complexity...
Monday, September 14, 2015
Modularity - The Architecture of The New Economy...
Timely and responsive service is critical for building loyal relationships. Successful advisors seek to understand clients' individual preferences and adapt their service level accordingly...
How Gramm Leach Bliley reversed the Evolution of Finance in America...
Rating agencies, Chinese Walls, revolving doors... Etc...The whole system became incestuous and fragile
Monday, August 24, 2015
Complexity Economics...
It's understanding that the economic world, like parts of the physical world is described by non-linear dynamic systems in which outcomes are heavily influenced by quite small changes to initial conditions. So there is no equilibrium, but constant evolution and change....
Thursday, August 20, 2015
Organizational Ambidexterity...
Modular-Finance requires a level of Organizational Ambidexterity that is absent from classic shareholder Value/Product/Push Model of old Wall......Modular-Finance is a design Arcgitecture to provide Innovative Outcome driven customized solutions...
Friday, July 10, 2015
Modular-Finance....
A Concept Developed by MAIN & WALL to Simplify Complexity...It's That Simple../.
Wednesday, June 3, 2015
Sunday, May 31, 2015
Suitability is not a Competitive Standard of Excellence...
The reason banks are lobbying so hard to protect the suitability standard is that's the only way the can stuff your portfolio with high margin crap...
The Next Level...
The Apple Factor is Mountain #2.
The Tiger factor is Change by Competition....at The Arena Level...not Consulting Level...
The Tiger factor is Change by Competition....at The Arena Level...not Consulting Level...
Tuesday, May 12, 2015
What Institutional Investors Desperately Need: Two Letters
What Institutional Investors Desperately Need: Two Letters: Two letters seem to be missing from the world of pensions, sovereign funds and Giants generally: ‘R’ and ‘D.'
The Folly of Modern Finance Theory...
The notion that markets incorporate all known information and are thus efficient - logical and rational is Ridiculous.....Markets incorporate multiple modules of "hidden/unknown information"...Hopes and fears that can't be quantified...Context Matters..
Sunday, May 10, 2015
The ModularWorld* ~ A Parallel Universe...: The Financial Meltdown - A Darwinian View of an In...
The ModularWorld* ~ A Parallel Universe...: The Financial Meltdown - A Darwinian View of an In...: While some were sleeping and others at work.......The Financial System was Rewired... .. After all was said and Done: 1) The Ethical Lev...
Noahpinion: Economists don't have "physics envy"
Noahpinion: Economists don't have "physics envy": I hear all the time that economists have "physics envy". This doesn't seem even remotely true. I'm not sure whether &quo...
Friday, May 8, 2015
Tuesday, May 5, 2015
Friday, May 1, 2015
Democracy, Culture and Capitalism - Context Matters
The pull of value, mediated by valuation, contracting, and guidance technologies, influences the paths of development of design and artifacts. The promised reward to those seeking value will be greatest along the paths that correspond to high perceived market value. For their part, the technologies of contracting and guidance will affect both what designers can see and how they seek value. As a result, the artifacts that arise in an advanced market economy will be different from those realized in primitive or planned economies. That is why the organization of the economic system is important to us as we attempt to understand the evolution of complex designs of artifacts like computers.
Thus we need to look at the economic system as a whole, using three technologies - valuation, contracting, and guidance - as our lens. The major force in this system is value, and so it is appropriate that we begin there.
Hat Tip ~ Design Rules, The Power of Modularity
Thus we need to look at the economic system as a whole, using three technologies - valuation, contracting, and guidance - as our lens. The major force in this system is value, and so it is appropriate that we begin there.
Hat Tip ~ Design Rules, The Power of Modularity
Sunday, April 26, 2015
Modular Designs Evolve as the options are pursued and exercised
Modular designs create value in the form of valuable real options. But how will that value be realized? In Design Rules, we argue that the value of a modular system will be realized over time via modular design evolution (MDE).
The promise implicit in a modular design is that parts of the system - the modules - can be modified after the fact at low cost. Foresighted actors seeking financial rewards will thus be motivated to pursue these options, and they will exercise the ones that are "in the money" at some future point in time ( the actual date may be uncertain). Exercising an "in the money" option in this case means introducing a new, superior version of a particular module and reaping the economic rewards. The rewards may take the form of higher product revenue, or lower process cost, or both.
from: Design Rules, The Power of Modularity
Modular-Finance seeks to create value... and draws from the Power of Modularity, Biomimicry and Complexity Economics to Design Robust and AntiFragile Systems...and can be applied across the financial Spectrum including Financial Planning, business Strategy, Investment, Policy Decisions and systemic risk models...
Adaptive Systems are Three Dimensional in Nature...vs Interdependent Systems - Two Dimensional Mechanical Ducks...
The promise implicit in a modular design is that parts of the system - the modules - can be modified after the fact at low cost. Foresighted actors seeking financial rewards will thus be motivated to pursue these options, and they will exercise the ones that are "in the money" at some future point in time ( the actual date may be uncertain). Exercising an "in the money" option in this case means introducing a new, superior version of a particular module and reaping the economic rewards. The rewards may take the form of higher product revenue, or lower process cost, or both.
from: Design Rules, The Power of Modularity
Modular-Finance seeks to create value... and draws from the Power of Modularity, Biomimicry and Complexity Economics to Design Robust and AntiFragile Systems...and can be applied across the financial Spectrum including Financial Planning, business Strategy, Investment, Policy Decisions and systemic risk models...
Adaptive Systems are Three Dimensional in Nature...vs Interdependent Systems - Two Dimensional Mechanical Ducks...
Sunday, April 19, 2015
Friday, April 10, 2015
Thursday, April 2, 2015
Monday, March 16, 2015
The World is Modular...
When you add in the human element...The Game Changes...Standing the Test of Time - requires the abliity to Adapt...
Sunday, March 15, 2015
Modular-Finance Theory*
In Theory, Theory and Practice are the same, in Practice they are not...
Therein lies the essence of Modular-Finance Theory - An expanded toolkit for practitioners
It may not be as clean and simple as modern finance theory - but it's a hell of a lot more realistic and hence a helluva lot more useful for practitioners who need to perform, build models and make decisions in the age of Liquid Modernity....Modern finance served us well in the age of solid modernity, unfortunately, that time has passed, Some get it some don't and some will get trapped in the past...
Therein lies the essence of Modular-Finance Theory - An expanded toolkit for practitioners
It may not be as clean and simple as modern finance theory - but it's a hell of a lot more realistic and hence a helluva lot more useful for practitioners who need to perform, build models and make decisions in the age of Liquid Modernity....Modern finance served us well in the age of solid modernity, unfortunately, that time has passed, Some get it some don't and some will get trapped in the past...
Robo-Advisors
Part of the solution - Not the total problem....a piece to the puzzle ..but the puzzle is much larger - When all is said and done - we will still be standing - liquid modernity - and robust was ok in solid modernity - but antifragile is the name of the game in Liquid Modernity...
Saturday, February 28, 2015
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