293 | Doyne Farmer on Chaos, Crashes, and Economic Complexity

882.554 - 909.731 Doyne Farmer

Financial instruments, mortgage-backed securities, housing market got overpriced, it crashed. All these things happened from within the economy. In a mainstream model, you can't get that to happen. And so you just don't get, it's very, you can get endogenous dynamics, but you have to push the economy into extreme, you have to make what seem like unreasonable assumptions in order to get there.