1/ If you have a complex network of interacting markets in which prices are set by emotional and sometimes irrational primates who do not make decisions independently, the first place to start to understand volatility is with the work of Benoit Mandelbrot. 25iq.com/2017/12/09/ben…
2/ “In a networked world, mayhem in one market spreads instantaneously to all others—and we have only the vaguest of notions how this happens, or how to regulate it.” Mandelbrot is saying here that an increasingly networked world is a much more turbulent and unpredictable world.
3/ Billions of people with supercomputers in their pockets interconnected by networks creates the potential for increased volatility in addition to valuable new products and services. An assertion that the cause of greater volatility is too much bank regultation is horse shit.
