Thursday, November 06, 2008

NEWS ALERT: Humans Behavior Cannot be fully Predicted

“To confuse the model with the world is to embrace a future disaster driven by the belief that humans obey mathematical rules.”

Emanuel Derman, Physicist employed
by Goldman Sachs quoted
In Modeling Risk, the Human Factor Was Left Out.

Lots of other ideologies/idealists have confronted this problem before. In other times and places reality/minds/bodies/memory have bent and distorted to fit perfection of the word. A worse fate than a couple of lost billions.

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