Last week I introduced my view that the various interlocking components of the industrial system are beginning to break down. The first one I mentioned was that “financial markets have been allocating capital into vast asset bubbles instead of into productive investments.” To dig deeper into this claim a good starting point is to look at wealth. The following chart shows the growth of private wealth in the United States, where private wealth is the sum of household and nonprofit organizations...

Money Ball was a good movie (I have to admit to not having read the book) with a crucial theme: statistics beats human intuition in complex situations. With the predictions for the 2012 elections we saw the same theme play itself out as Nate Silver crushed the pundits by using data. There are is also a fantastic example in Daniel Kahneman’s Thinking, Fast and Slow (which I did read) of a relatively simple data based model outperforming all “experts” when it comes to predicting the future pric...

Last week I introduced my view that the various interlocking components of the industrial system are beginning to break down. The first one I mentioned was that “financial markets have been allocating capital into vast asset bubbles instead of into productive investments.” To dig deeper into this claim a good starting point is to look at wealth. The following chart shows the growth of private wealth in the United States, where private wealth is the sum of household and nonprofit organizations...

Money Ball was a good movie (I have to admit to not having read the book) with a crucial theme: statistics beats human intuition in complex situations. With the predictions for the 2012 elections we saw the same theme play itself out as Nate Silver crushed the pundits by using data. There are is also a fantastic example in Daniel Kahneman’s Thinking, Fast and Slow (which I did read) of a relatively simple data based model outperforming all “experts” when it comes to predicting the future pric...