Collection of Interesting, Worth Reading NEWS, ANALYSIS & ARTICLES

Just now read an article in the Portfolio Magzine that the scientists (Physicists, statisticians, earthquake specialists and others) are trying to predict the economic downturns and other economic messes related to finance, utilities, real estate, derivatives, hedge funds etc. The scientists cited in the article argue that these problems are very complex and economists are not even capable of solving those problems. They add that the fundamental assumptions of the economics that "people, firms and other economic agents act rationally" is flawed and is no longer valid because of added complexity of these large "systems". The article provides some real examples such as Illinois' power market and the state of Illinois avoided the Enron-like manipulation. The scientists believe that the technology exists to build the massive computer programs to map our entire economies and predict what will happen if things go awry. Very Impressive!!! If this can happen then I wonder what these nobel prize winner economist will do for a living. :-) :-)

The full article can be read HERE