Chaos Theory in Financial Markets

Chaos theory attempts to explain the fact that complex and unpredictable results can and will occur in systems that are

Chaos Theory (film)

sensitive to their initial conditions. A common example of this is known as the Butterfly Effect. It states that, in theory, the flutter of a butterfly’s wings in China could, in fact, actually effect weather patterns in New York City, thousands of miles away. In other words, it is possible that a very small occurrence can produce unpredictable and sometimes drastic results by triggering a series of increasingly significant events.

Lets try to figure it out with Capitalism at a Cross Roads :

Here is the Preface

The Fed’s Dual Mandate and the Birth of Crybaby Capitalism: finding the butterfly Continue reading “Chaos Theory in Financial Markets”