Friday, 26 November 2010

64th session of Philosophical Foundations of Law and Finance (Friday 26 Nov, 6-8pm, Room 5.16, 309 Regent Street, University of Westminster)

Dear all,

As we circle in on truth, we tend to spiral out in fantasy.

All mathematical problems like objects in real life are essentially about the domestication of wild animals, the Absolute (infinity) being the wildest.

For the 64th session of Philosophical Foundations of Law and Finance, we will examine a hypothetical matheme and attempt to step back from the indefinite infinitude to the secure but still dangerous edge of a definite infinity.  The title to the investigation is:

The Entropy of Law and Finance - Towards a Principle of Uncertainty as a Definite Infinity.

Entropy may be defined as "the measure of the number of arrangements that conform to some specific recognizable criterion" [Susskind 2008 @131] or simply "the hidden information".  We will see whether we can translate this matheme into law and finance. The argument runs: (1) the pricing function in finance is analogous to the legal judgment in law, with a phenomenological certainty at the time of pricing and judgment equivalent to an entropy of 0; (2) we hypothesize the principle of uncertainty for law and finance is in the form of:


Δ is “delta” or change
X is price
Y is the judgment, and
C is a constant.

So, ΔX is a form of “price risk” and ΔY is a form of “legal risk”. Because C is a constant, the higher the value of ΔX, the lower the value of ΔY and vice versa.

This form of the Principle of Uncertainty in Law and Finance may help us glean a first approximation of the concept of “risk event” e.g. “Eurozone Risk”, “Contagion Risk” and “Systemic Risk” and the “truth procedures” that instantiate chimeras of regulations in our politically and economically hijacked media narratives.  [For illustrations of “event” and “truth procedures”, see passim Badiou’s (2005) Being and Event, and for a view of infinitudes, his “Meditation Twenty-Six: The Concept of Quantity and the Impasse of Ontology” id @ 265-280.]  

"Why do we need a physics of law and finance? Because regulators and traders appear to unconsciously make Black Holes. The EURO is having a near-death experience." 25 

Afterwards, at around 8pm we will continue our exploration on the restaurants in the area.

Best regards,

Rezi & Joe


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