We are in the midst of a shift in how we encounter information. And we’re wrestling with three paradigms at the same time. The oldest of these paradigms, for for most of us, is edited media. … You have a powerful gatekeeper, the newspaper editor, who says, “Here are things you need to pay attention to today. Give this a small amount of your time, and you will be roughly up to date with what you need to know.”
We know very little about complex financial systems and how systemic risk, as it’s called, is computed and how you would manage policies. And if you look back at the financial crisis, you can either say, as many economists do, “It all had to do with badly‐designed rules,” which may be part of the story; it’s certainly part of the story. Or it may have to do with the interaction of those rules and human nature, like mortgage broker greed, optimism… And you see it not just in individuals who now have houses and foreclosure, but at the highest levels.