Tuesday, November 18, 2008

Systemic Complexity

Ann Arbor Coffee Break - While sitting in Caribou Coffee at Stadium and Packard late this afternoon, I found a quote in the New York Times business section. The article was about Intel's new Nehalem processor and how even with extensive testing there really was no way of knowing for sure if the chip would operate flawlessly after release.

"Now we are hitting systemic complexity...Things that came from different angles that used to be independent have become interdependent" Aart de Geus, chief executive of Synopsys (a Silicon Valley developer of chip design tools)

As an Ann Arbor area real estate agent - this reminded me of the financial industry packaging mortgage based securities and selling (and reselling) them to the point where bank's assets are leveraged 100:1. No one can possibly know what is going on with this mess and the impact on the local housing market.

Image: Flickr D LeRoy

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