When the facts change, I change my mind. What do you do? -- John Maynard Keynes
Tuesday, August 16, 2011
The Density Dynamic--pros and cons
Everything Will Be Too Big to Fail - By John Seo | Foreign Policy The Density Dynamic . . . in virtually every human endeavor, density pays. . . .But density has consequences . . . the cost of natural catastrophes of all kinds will rise dramatically. . . . a decade and a half from now, a single hurricane or earthquake will come with a potential price tag of $1 trillion or more. . . We can look forward to bigger and more frequent financial catastrophes as well. Think of equity capital as land, industry segment as location, and financial risk as density. Concentrating all of these means greater productivity, but it also means that we are inviting ever more catastrophic financial hurricanes. http://www.foreignpolicy.com/articles/2011/08/15/everything_will_be_too_big_to_fail
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