Forecast: What Physics, Meteorology, and the Natural Sciences Can Teach Us About Economics (Mark Buchanan, 2013)

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  •  Quant meltdown
    • 2007, AQR Capital Management, Goldman Sachs Global Equity Opportunities Fund and Medallion loses a significant amount of investments.
    • Metastability is the reason for the quant meltdown.
  • Wisdom of crowd effect
    • If people are unbiased in their estimates and if they make different mistakes that tend to cancel out.
  • Bernie Madoff effect
    • He cheated 10 of billions of dollars.
    • It was a ponzi but covered by blue chip investment of 10-20% p.a.

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