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January 15, 2014 9:16 PM
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Hank Paulson on Complexity

Hank Paulson on Complexity | Decision Intelligence News | Scoop.it
Decision Intelligence's insight:

Watching HANK on Netflix tonight.  Worth a watch.  Another data point validating our intuition of increasing complexity in recent times:


"Along with innovation came complexity.

And complexity is the enemy of transparency.

And complexity is not a good thing in finance."

[24:33]

...


"The domino theory isn't an accurate one here.

The best way to describe it is the popcorn theory.

We had this giant popcorn popper, and it had been heating these kernels for a year as the crisis went on. 

And Lehman may have been the first to pop, and even with Lehman we knew that the same weekend that Lehman was going down we had Merrill Lynch and AIG. So we had three institutions going down. And Merrill Lynch and AIG  weren't going down because of Lehman. They were going down because they had their own bad loans...

That week was like no other week I've ever had.

…

We were juggling difficult decisions, each of which would have demanded 100% of my time at any other time."

[56:00]

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