{"id":1279,"date":"2010-08-05T00:00:01","date_gmt":"2010-08-05T04:00:01","guid":{"rendered":"http:\/\/www.synapse9.com\/signals\/?p=1279"},"modified":"2010-08-05T00:00:01","modified_gmt":"2010-08-05T04:00:01","slug":"market-earth-quakes-a-sign-of-emergent-chaos","status":"publish","type":"post","link":"https:\/\/synapse9.com\/signals\/market-earth-quakes-a-sign-of-emergent-chaos\/","title":{"rendered":"Market earth quakes, a sign of emergent chaos"},"content":{"rendered":"

Regarding an article in the NY Times,\u00a0A Richter Scale for Markets<\/a> and to\u00a0Dirk Helbing\u2019s letter to Soros<\/a> on the new physics exploring the great disruptive events our economies so frequently produce.<\/em><\/p>\n

To Xavier Gabaix, w\/ H. Eugene Stanley – authors of the study referred to:\u00a0A theory of power-law distributions in Financial market<\/a><\/em><\/p>\n

<\/a><\/em>_______<\/em><\/p>\n

Xavier &\u00a0Eugene,<\/em><\/em><\/p>\n

The term you use is \u201ceconophysics\u201d but the graph in \u201cA Richter Scale for Markets\u201d in the NY Times seems to display much more than you mention. \u00a0 It shows the swelling and decaying disturbances in the economy, where theoretically they are not supposed to be. I use a physics based data mining tool to expose emerging systems of that kind. \u00a0One example I found shows market pricing mechanisms dramatically “fishtailing” an going out of control, for example. \u00a0It might be useful to you.<\/p>\n

As I approach it, these physical processes of \u201chappening\u201d appears to be very usefully observable, and expose the mechanisms taking place in the \u201cunhidden patterns\u201d of their emerging continuities, i.e. the sequence of how they systematize and desystematize by grow and decay.<\/p>\n

\"Richter<\/p>\n

In my many years of work on it I learned quite a bit others should find useful I think, except I keep running into theorists limiting themselves to constructing equations before clearly identifying the physical processes they are studying\u2026 or something, and so not getting what they can from mapping the developmental sequence of events. Here\u2019s a couple more, things well mannered economic systems are NEVER supposed to do [as if the market players run out of room to maneuver and are cornered by something into slow motion panics].<\/p>\n

\"2003-8
\n\"2003-8<\/p>\n

It\u2019s the continuities that expose them, and expose how they operate to the patient eye, and are what my approach is fairly effective in using to expose the sources of their power and the information we need to protect our environments from the conditions that set them off. Of course most generally, once they begin you\u2019ve completely lost control.<\/p>\n

The catch,.. and there is a catch,.. is that we\u2019d need to both learn some things, because my knowledge is built using a general model of eventful non-deterministic processes in nature, physical processes having *energy continuity in developing organization* which one may clearly identify developmental processes of but must assume they operate by means beyond the range of our information to describe.
\n\u2014- fyi
\nThe general\u00a0law of continuity in change<\/a>, (and general form of complex physical systems) & recently published in Cosmos & History,\u00a0Models Learning Change<\/a> (and map of how to read nature for signals of change)<\/p>\n

A related post on The Oil Drum concerns some of the \u201cpoints of vanishing returns\u201d for otherwise smoothly running net energy systems (i.e. nature\u2019s forms of bankruptcy) that seem to trigger these other kinds of systemic disturbances.\u00a0Profiting from Scarcity<\/a><\/p>\n

phil<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Regarding an article in the NY Times,\u00a0A Richter Scale for Markets and to\u00a0Dirk Helbing\u2019s letter to Soros on the new physics exploring the great disruptive events our economies so frequently produce. To Xavier Gabaix, w\/ H. Eugene Stanley – authors of the study referred to:\u00a0A theory of power-law distributions in Financial market _______ Xavier &\u00a0Eugene, … Continue reading Market earth quakes, a sign of emergent chaos<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","footnotes":""},"categories":[6,7],"tags":[],"class_list":["post-1279","post","type-post","status-publish","format-standard","hentry","category-mail","category-econn"],"_links":{"self":[{"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/posts\/1279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/comments?post=1279"}],"version-history":[{"count":0,"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/posts\/1279\/revisions"}],"wp:attachment":[{"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/media?parent=1279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/categories?post=1279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/tags?post=1279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}