Over the past three decades, the global financial system has become more dynamic and interconnected, more concentrated and complicated than ever before. Financial engineering seems to know no limits to creating new instruments that link institutions in new ways. Is that a good thing? Or could the resulting financial network be too complex? Or, perhaps, complex in the wrong way?
A look at biology -- which has been tinkering with network designs for billions of years -- suggests that the answer to the last question is most likely yes.
Via Ashish Umre