10 August 2013 - complexity is fraud

The financial world has a saying that “complexity is fraud”. If you see a Russian doll arrangement of shell companies, that’s fraud. If you see collateralized debt obligations with a risk model that you can’t puzzle out, that’s a good sign of fraud too. If you look at modern society as a whole—the laws, the institutions, the politics, the production networks, the infrastructure—you see that it can be described only by a more complex saying.