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Market bubbles may be predictable, controllable
DURHAM, N.C. -- It's an idea financial regulators have dreamed of. Experiments on a simple model of chaos have found that it may be possible not only to predict an extreme event, like a stock market collapse, but to intervene and prevent it from happening.

In a paper appearing October 21 in the journal Physical Review Letters, an international team of chaos researchers say that these extreme events, which they call "dragon kings," are less random than had been thought and that, in a simple experiment at least, they can be anticipated and controlled.
money 
october 2013 by warrenellis
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