[Ummon]

more of that liberal science scum at work

[mikema63]

Econophysicists.

[Paradigm]

Econophysicists.

It's economics that incorporates dynamic systems modeling and chaos theory rather than the more static models typically used in mainstream economics. So it's not really "physics" per se, but more like economics that applies the type of advanced mathematics used by physicists.

[Potemkin]

It's economics that incorporates dynamic systems modeling and chaos theory rather than the more static models typically used in mainstream economics. So it's not really "physics" per se, but more like economics that uses advanced mathematics.

If the size of these firms followed a power law, the largest would be ten times bigger than the 10th on the list. But that isn’t the case. But the world’s largest, Fannie Mae, has assets worth $3.2 trillion, just 50% larger than the Royal Bank of Scotland.

Why the discrepancy? Fiaschi and co hypothesise that the difference is equal to the size of the shadow banking system, which is not captured in the balance sheets of the largest financial firms.

And if that’s the case, it’s straightforward to calculate its size. The value of the shadow banking system is simply the difference between the value of the largest financial firms and their projected size according to the power law.

[Lexington]

1. Econophysicists. Because we have to emphasize that economists know math nowadays.

2. Power law used to estimate shadow banking. Without resort to any definition of shadow banking.

3. Do you people actually know the difference between normal banking and shadow banking? And do you care?

[mikema63]

1. That's certainly not whats implied by the name.

2. So a guesstimate?

3. Of course I care, doesn't make it not funny when social scientists try to hard to fit in.

[Ummon]

Now who is trying to inflate their egos? Vlatko Vedral made an interesting ARGUMENT in his book decoding reality for an information theory of reality that uses natural logs as the mechanism to explain data compression. I think YOU GUYS are full of shit.

This information view of the universe has been growing in popularity as well including David Deutsch

but whatever I guess haters gonna hate.