Living cells show how to fix the financial system

Aca

"Hierarchy, in other words, is a way of limiting complexity in the interest of both stability and evolvability. Simon argued that systems structured in this way possess a basic, competitive simplicity"

"...Bone, like most other structures in biology, is not just complex, but complex in a highly organized way. What about structures in economics and finance? "

"The growth of modern finance seems to have violated the principle of hierarchical structures, and with gusto. Two trends in the past 30 years -- the merging of banks into huge institutions and the explosion of derivatives that link them around the globe -- have made the network much less modular. We have created a vast web of interconnections with extreme complexity but little organization. And this does appear to have made the system less resilient."

El paper de Herbert Simon