“Statistics are the triumph of the quantitative method, and the quantitative method is the victory of sterility and death.”
This is a personal story of statistics, properly interpreted, as profoundly nurturant and life-giving. It declares holy war on the downgrading of intellect by telling a small story to illustrate the utility of dry, academic knowledge about science. Heart and head are focal points of one body, one personality.
Stephen Gould, Phd
COULD THIS BECOME A BANKING CRISIS?
Whilst the world watches the wild gyrations in stock markets, and investors try to absorb the economic implications of the Wuhan coronavirus, it’s important to remember that market falls are neither the only, nor indeed the most important, financial effects of this situation.
It doesn’t take all that much joined-up thinking to spot the lines of financial contagion that threaten to transition this from an industrial problem into a threat to the banking system.
What matters now isn’t how much theoretical asset value investors may have lost, but the real, cash-flow consequences for businesses and, by extension, to their lenders.
Essentially, slumps in equity prices simply reduce the amount that owners could get for their shares now, compared with those that they could have realised a week or so ago. Except where stocks have been acquired using debt, there are few immediate
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