Sunday, February 17, 2013

"The Physics of Wall Street"

"The Physics of Wall Street: A Brief History of Predicting the Unpredictable", by James Owen Weatherall

The title says physics. The coverage is multidisciplinary. I don't recall seeing anybook that has managed, in lucid and coherent fashion as this book does, to elaborate through complex and intriguing history of prediction sciences.

The story of Mandelbrot picking rejected trash from his uncle and developed it into his own theories is the best. This is very informative how Zipf, Pareto and the prediction science are stringed together in this book. The best intellectual and information value, to me, lies in pages before page 75.

Pages after 75, though, overlap much with common knowledge. Lack of computation converage is understandable given the writer's lineage in philosophy. The book does not smell much of arrogance, as some claim it does. If somebody has reached certain height, it is not avoidable part of what he sets sights on is under him, not above. If that sounds disrespectful to you, then raise youself or just be it.