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by kqr 1944 days ago
The information flows are also incredibly complex and self-reinforcing with all sorts of impenetrable feedback loops.

Low wheat yield one year can cause reverberations throughout the world for many years to come. These can affect strategic decisions by businesses, which then affect strategic decisions among their suppliers, and so on.

Eventually the effects of weather patterns die out, but not before they have (perhaps almost imperceptibly) affected every business around the world, perhaps many decades after the initial event.

This, anyway, is how Mandelbrot speculated the autoregression, correlation, and long-term dependence of the markets might arise.

Trying to figure out the effects of an event in that world beyond the simplest, first-order ones is futile, no matter your resources.