Cool: how economic "energy" and gravitational energy are similar, and negative energy leads to collapse!
This may seem odd, but recall Seth wrote the book "Programming the Universe", how the universe is a calculation, so to speak, thus its not too great a stretch to see the connection.
Abstract: Because gravitational energy is negative, self-gravitating systems are susceptible to runaway instabilities such as gravitational collapse. Financial systems also possess a kind of negative "energy" in the form of debt. This talk presents a simple statistical mechanical model of how energy/money distributes itself through a set of coupled systems that allow negative energy or debt. The model identifies a phase transition from positive to negative specific heat: when gravitational or financial systems pas through this phase transition, they become unstable. I identify the mathematical conditions that give rise both to bankruptcy and to black holes.
Begin forwarded message:
Date: November 10, 2010 8:30:52 AM MST
Subject: [Activities-announce] SFI Colloquium — Thursday, November 18, 2010 • 3:30 p.m. • Noyce Conference Room, SFI
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 | *** SFI Colloquium ***
Thursday, November 18, 2010 • 3:30 p.m. • Noyce Conference Room, SFI
SFI Colloquium
The Black Hole of Finance
Seth Lloyd
(Department of Mechanical Engineering,
Massachusetts Institute of Technology and
SFI External Professor) | 
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************* Abstract: Because gravitational energy is negative, self-gravitating systems are susceptible to runaway instabilities such as gravitational collapse. Financial systems also possess a kind of negative "energy" in the form of debt. This talk presents a simple statistical mechanical model of how energy/money distributes itself through a set of coupled systems that allow negative energy or debt. The model identifies a phase transition from positive to negative specific heat: when gravitational or financial systems pas through this phase transition, they become unstable. I identify the mathematical conditions that give rise both to bankruptcy and to black holes.
SFI Host: Rogier Braakman http://www.santafe.edu/gevent/detail/science/394/ *************
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