I herd appeared m-blog of the last time an exciting contribution to the "Modern Financial Theory." More or less, this entry is a review of the book "Alchemists of Loss" that an attack on an entire paradigm is:
"Their main thesis is based, in its current form," Finance "(the theory of financial markets and risk management ) on unrealistic assumptions and belongs to the dustbin of history. However, since so much money with the wondrous "alchemical" recipes can earn this academic discipline, whether at investment banks, hedge funds, rating agencies or the University of operation, the lobby, which advocates for their survival, quite large and not just poor .
Two of the affected areas that are mentioned in the article that I find particularly interesting The one area relates to the risk, the other the speed but only at the risk..
"Not most recently, the concept of Value-at-Risk it has done to the authors. With the risk management procedures "Can the risk (of a portfolio) excellent control, provided that markets are more or less risk-free". . (P. 12) occur when real risks burst when about real estate bubbles and asset bubbles, ie if there is not just about price fluctuations, value-at-Risk is proving to be completely useless "This is of course a bit of a paradox: the risk calculated for markets to do that we assume as the starting points of the deliberations as virtually risk free. The second factor that is difficult is that chance. In the book capital markets
of Sprämann / Gantenbein can thus for example , Found that the risk of the investor the chance . Strictly speaking, there is the chance but only as admittedly sometimes helpful, but sometimes leading astray fiction: the world and the social processes taking place on their sheared, but not really a coincidence - it is much more the result of complex, chaotic interactions. An insight that here already in regard to the recently played here are put book by Elena Esposito a role. But even that would almost Dirk Baecker dictum that even the most secure bank is an uncertain business goes in that direction. The reviews and reflections of the two sociologists go here at least from the relatively similar basic assumptions: They both suggest the need for a reflection of the fundamentals. There is probably not cause the unreflexktierten faith in models. In the band Structured irresponsibility: Reports from the banking world
finds himself as an interview with a young climber, an investment dealer an Austrian bank, in view of the crisis was the sentence: "This has to imagine any can ! ". What is interesting is with him but at least to one who plays every day with millions of deployments. And even more interesting, we do know that it is not a catastrophic crises like this, incredible uniqueness. In addition, was just before this crisis from many sides have warned of the outbreak. Just not only from the side that is heard by the statisticians. But so be it, the next interesting topic that was raised concerns the speed, or more precisely, the acceleration: "Another source of danger, in this view, the excessive trading activities - as they build a so-called Tobin tax on transactions before. Thus, the high-speed trade with mathematical models and borrowed money would be unattractive. "money is opportunity for world development. Hartmut Rosa, the German sociologist and political scientist on the research of social acceleration specializes explains in his book acceleration. The change in the time structures in the modern
well how the same techniques and methods that can open up fields and quickly realize, can also increases the possibilities of feasible options yourself. In this sense, he also notes that a major problem of the economy, maintaining is the accelerated circulation. That the "high-speed trade" may pose high risks in itself, can be made of the seemingly paradoxical fact declare that fast trading continue to develop new fields of opportunity and thus risks opening, evaluation and auditing, etc. What was a few moments before, is just as important as what will be a few minutes later, writes Konstanze Piel . What is clear however is that the acceleration is a multiplier in the financial markets of the severity of crises. Surprising that, on the public discourse on this aspect has been little attention has been paid. 
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