lördag 12 januari 2013

Options and GHE

The options market based on the Black-Scholes formula created a fictional financial market which has led into the present economical crisis. Similarly, the GHE based Planck's radiation formula has created a fictional climate change market adding to the crisis. In both cases a simple mathematical formula is given a universal validity way beyond its original meaning and realities of this world. In both cases the root of the trouble is an inflated belief in formalities resulting from a misconception of mathematics.

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