I actually thought this was a bad article.

I agree there is a problematic bailout culture in finance.  I agree that lots of firms and government groups were irresponsible.

But, he has this idea that the financial crisis demonstrated the failure of formulas and abstractions.  It demonstrated the failure of particular ones.  But, just because some abstractions didn’t work doesn’t mean none ever will.  Human nature and civil society are complicated, but we could only believe somebody’s assertion that something’s beyond human comprehension if it isn’t beyond theirs.  Otherwise, how can we take their word for it?  That’s my problem with Edmund Burke too.

Maybe that means we can’t let science get ahead of non-science (in this case, traditional finance), but we have to realize there are risks of shutting down good abstractions as well as enabling bad ones.

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