All of Vilhelm_S's Comments + Replies
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"If you look at the rules for Conway's Game of Life (which is Turing-complete, so we can embed arbitrary computable physics in there), then the rules are really very simple. Cells with three living neighbors stay alive; cells with two neighbors stay the same, all other cells die. There isn't anything in there about only innocent people not being horribly tortured for indefinite periods."
While I of course I agree with the general sentiment of the post, I don't think this argument works. There is a relevant quote by John McCarthy:
"In the 195...
If someone notices that morgage defaults are uncorrelated, and new instruments that exploit that lack of correlation are invented, investors will be more likely to buy securitized morgages, so the rates are bid down and they become cheaper for homeowners. But that in itself should not cause defaults to be more correlated.
In the event, the models for correlation were off, and defaults were more correlated from the start. But that's not a problem with public/private knowledge or anything; they were just bad models. If the prizing had been done correctly to s... (read more)