http://i305.photobucket.com/albums/nn240/carseller_02/brainchart.jpg

Then CHFNOK 6,01, now 5,58, it’s blowing up again, and there will not be debt deflation, and deflation, simply because there will be a new bubble, and resumption of old bubbles instead.

On another note: let’s have a dose of cheer in the midst of the doom and gloom that has engulfed so many societies as a result of the casino capitalism that reigned, often by stealth, for the last few decades.
Surely, in time, the current crisis will be overcome and we can all relax a bit. Until then, however, we must all strive to expose what went wrong in the financial centres of the ‘madoffs’. In doing so we will contribute to the construction of a more just and sustainable global economic system, for the common good of our world community. It will be for the benefit of us all.
Please read more on my blog at:
http://globalinsights.wordpress.com/

You’ve done the community a real service by stating just how overvalued real estate is today. Hopefully many prospective young home buyers will be spared much pain as a result of the messages you’ve provided through your blog site and the print and electronic media.

Best of luck for the future.

Thank you for the reply. I must find those glasses of mine before making comments next time.

Keep up the great work..

But your insight was and is spot on.

However converting economists to Mandlebrot’s reasoning has been an unsuccessful endeavour. In fact, Mandlebrot did first work out chaos using the data from cotton trading, as you note, but completely failed to gain any traction with economists who were looking for equilibrium in the data (where none existed of course), and gave up and moved over to geometry and geography. The Mandlebrot Plot emanated from that work, as did the application of chaos theory to geometry in the concept of the fractal dimension.

A revised economics would certainly include Benoit’s wisdom as part of it, but it will I expect await the retirement and/or death of most of today’s (neoclassical) economists, who really are a lost cause.

just wanted to say as a non expert in economics, I found your site great from the Australian perspective. So much of what is available on the web primarily relates to USA or Europe – and its great to find comment pertaining to the Australian context.
Keep up the good work!

I am a retired Risk Manager from the Agricultural sector, mainly in grains and forex. When I started my career I read alot about Beniot Mandelbrots work in the 1960s in the US cotton market. His way of thinking that markets were often irrational and the need to look past psychology and at the math, has truely been what I owe my success to. In fact I would dare say that his work has benefited thousands of grain growers across Australia for more than 30 years. As it became the basis of my risk management methodology and local market making here in Australia. Keep up the great work and always remember that the all truth passes throught three stages, first it is ridiculed, then violently opposed and then finally accepted as being self evident. If you ever want to dismiss the widely held myth that most modern economists have about “efficient market theory”, just send them a copy of Mandelbrots book “the (mis) behaviour of markets”. Its hard to agrue with a someone who came up with Choas theory and fractals. Sorry if any spelling mistakes here my eye sight is not what it once was.