Michael Lewis on Disaster-Risk Trading

This is an interesting and entertaining article, a bit long but worth reading. I’m not sure that Lewis completely understands some of the concepts here (or maybe I don’t understand them), and I think that he overpersonalizes his discussion by framing it as a narrative about mostly one person, which I suppose comes with the territory in journalism. It’s still quite a good article, however.

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Judgment Day

I’m re-posting this here as I know the links may be of interest to certain parties.

An interesting confluence of information has crossed my computer screen in the last 24 hours.

Fabius Maximus was kind enough to send me a PDF, “Cognitive biases potentially affecting judgment of global risks” by Eliezer Yudkowsky, Singularity Institute for Artificial Intelligence. It’s a very interesting paper on analytical thinking – or is even though a number of the points made by Yudkowsky I have seen previously made elsewhere ( the blogosphere revels in hyperactive disconfirmation biases). Their central cognitive philosophy – “….the one whom you must watch above all is yourself”, is spot on.

Secondly, over at Kent’s Imperative, one of the Kentians, let’s call them “Most Formal Prose Kent” had a highly congruent post to the Yudkowsky paper, “The sins of analytic methodologists “:

There is an increasingly common conceit that reliance on the analyst – subject to, cognitive bias, information overload, and human fallibility – can be engineered out of the process of doing intelligence. Instead, certain methodologists would substitute organizational structures, workflow re-organization, and the introduction of supposedly superior quantitative metrics in order to create a new standard for “answers”. The underlying thrust of these efforts is to reform intelligence activities towards a more “repeatable” process, often described by industrial or scientific metaphors such “foundry” or “lab”. These typically originate from the engineering and technical intelligence disciplines, and are usually directed as criticism of typical all source efforts – particularly those grounded in social science fields or qualitative methodology.

…The fundamental flaw in many of these methodologists’ efforts is that they are essentially reductionist attempts to force the difficult and oft-times messy art of intelligence entirely into the narrow box of its scientific side. While there is a place for scientific approaches, particularly in the grounding and validation of assessment, the inherently creative, non-linear, and even non-rational elements of the profession can never be completely discarded. Most recent intelligence failures have occurred, not due to a lack of precision in judgment, but from a lack of imagination in identifying, describing, and forecasting the uncertain dynamics and emerging complexities of fast-changing accounts.”

Sagely described.

Clear thinking is difficult. Few of us begin by adequately checking our premises or, sadly, our facts. Even in the domain of concrete and verifiable factual information, so much rides on our implicit opinion of what exactly, in terms of data points, constitutes a ” fact”, that we are usually off-base before we begin. Even if we are cognizant of these variables from the inception of forming a question, we might be horrified to discover, with some dogged investigation of the finer details, how fuzzy at the margins that even our peer-reviewed, “valid and reliable”, facts can be – much less the breezy assertions delivered by the MSM.

Then, more to the point of the KI post, there is the hasty selection of particular, reductionist analytical tools that a priori blind us to the nature of the emergent unknown that we are trying to understand. We become prisoners of our chosen perspective. One problem with human perception is that there is no guarantee, having recognized the existence of a novel dynamic phenomena, that our perception represents the most significant aspect of it. Much like conceptualizing an Elephant in motion from blind contact with its eyelashes. Or its feces.

Human nature is a perpetual rush to judgment. We must rise above that.

Review of John Robb’s Brave New War

Dan from Madison has written a thoughtful review of John Robb’s Brave New War.

Excerpt:

Most urgently Robb almost begs for the US to radically restructure the electricity grid. Again, those who can afford it will simply go off the grid – through the use of wind, solar and other types of generation. Another interesting point he made is that some municipalities may just go ahead and create their own power generation and distribution. A wonderful example he provides is suburbia – I think Chicago. Many suburbs are breaking apart from large cities as we speak to ensure their own safety and care. This is an excellent point. IIRC there is a suburb in Atlanta doing this exact thing right now and I would argue that many suburbs in the Chicago area will eventually break away from the black hole that is Cook County. Do you honestly think that people in places like Downers Grove will ever send their kids to the Chicago Public Schools? On the flip side, what sort of parent, if they have the resources and live in the City of Chicago wouldn’t send their kid to a private school? That would be borderline child abuse.
 
De-centralization of everything seems to be Robb’s key point.

Read the whole thing.

Millennial Boyz

I’m on a mission from Lex. On Thu 12 Jul at 5:34 PM CDT, he wrote me:

> Are the Millennials Different?
>
> I know you are a fan. Any response must be cross-posted on CB!

I can think of nothing better to do on a fine Bastille Day evening — having missed the concert by virtue of being 400 miles to the southwest — than consume modest quantities of ethanol in the form of Boulevard Lunar Ale and compose a rambling post for infliction on the readership here. By way of my usual thinning out of my prospective audience, graze on over to Arcturus for what has become known as the Baby Boomer Apocalypse post, which will 1) impart what I think is the most important aspect of Strauss & Howe’s model and 2) very likely cause you to decide you’ve got better things to do than read the rest of this.

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