From: John Conover <john@email.johncon.com>
Subject: Additions to Quantitative Analysis of Non-Linear High Entropy Economic Systems Addendum
Date: Mon, 06 Jun 2011 21:57:19 -0700
New appendix added to Quantitative Analysis of Non-Linear High Entropy
Economic Systems Addendum concerning forensics of the "Great Recession."
There is a lot of blame to pass around, from the regulators, to the
bankers, to the brokers, to the housing buyers-all violated the "Kelly
Criteria," one of the most important mathematical methods of the
Twentieth Century, (it is used literally billions of times a day by the
hedge fund industry and algorithmic equity traders.)
Of particular interest is the references listed in the last paragraph,
(Poundstone's book is highly recommended.)
John
BTW, William Poundstone's book, "Fortune's Formula: The Untold Story of
the Scientific Betting System that Beat the Casinos and Wall Street," is
non-mathematical, and is about Ed Thorp, (of Black Jack card counting
fame,) and the guy that revolutionized the way hedge funds do what they
do. All of the NtropiX and NdustriX software/analytical methodology is
based on the "Kelly Criteria."
http://www.johncon.com/john/correspondence/020508170137.5425.html#appendixXI
--
John Conover, john@email.johncon.com, http://www.johncon.com/