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We need this sense of the continuing interconnectedness of the system as part of [our] common knowledge.
Effective supervision should focus on the accumulation of high levels of risk and leverage, Ms. Yellen said, sources of vulnerability that are shared by multiple institutions, and the interconnectedness of the system.
We need this sense of the continuing interconnectedness of the system as part of the common knowledge, so that politicians feel it and believe it, and so that voters feel it and believe it, and so that kids feel it and believe it, so that they'll grow up with an ethic.
It's also not obvious that hitting smaller airports with more furloughs is a painless solution, especially given the interconnectedness of the system.
"To the extent that banks find the single counterparty position limit onerous, this should only alarm us with respect to the great interconnectedness of the system," a group of Stanford University professors led by Anat Admati wrote in an April 30 letter to the Fed.
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In examining disasters like the Challenger explosion and the near-meltdown at Three Mile Island, Perrow argued that while the events were unforeseeable they were also, in some sense, inevitable, because of the complexity and the interconnectedness of the systems involved.
"Clearinghouses are intimately connected with the financial system and overall banking system, so the idea that clearinghouses reduce the interconnectedness of the financial system is incorrect," he said.
It said more work was needed and that it had not looked at the interconnectedness of the banking system and its opacity as it increases in size.
Their discovery highlights the interconnectedness of the climate system, and suggests feedbacks on other key aspects of tropical climate like El Niño.
(Bank failures have the opposite effect; because of the interconnectedness of the financial system, one blow-up makes another more likely, not less).Indeed, Mr Taleb thinks the big mistake is trying too hard to avoid shocks.
As you learn how the world spiraled into depression, about the interconnectedness of the banking system, where a failure in one country led to problems in other countries, about the way economic orthodoxy caused brilliant central bankers to make mistake after mistake, and on and on — you can't help thinking about the economic crisis we're living through now.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com