Koornwinder Convention. Grand Hotel Amsterdam, 2010
TV-show 'Anno Joosten' 1995
Circles of Knowledge Conference
Marlborough College 2011
Since the 1990s – during and after her career as a global market analyst – Herma Koornwinder has used the conference platform many times to warn about the defunct practices and models of the banking and investment sectors, and about the urgent need for them to change their ways in response to the digital revolution.
Here are some examples.
Investing: Intuition or Institution?
New investment technology vital to finance effects of ageing and high-tech unemployment
Erasmus University, Rotterdam, the Netherlands
And also in: Pecunia Forum and Magazine
‘It is simply not true that the market is always right. People actively participating in the market are rarely aware of all relevant factors … One should try to identify the risks in the market, in order to be able to avoid them as much as possible. But since we seem to have collectively adopted the opinion that it is impossible to identify these risks, we tend to focus on limiting the damage as much as possible. In other words, people are using the same outfit for swimming as for ice-skating.’
‘This extra dimension of modern knowledge technology is what the orthodox investment methods lack.’
‘In order to be able to react adequately to the approaching changes we will first need to realise that this is just the first phase of an enormous transformation process and that the digital era will hit us like a tidal wave.’
‘In the not too distant future economics students will no longer be able to rely on what they were taught and will have to find their own way on the “electronic highway” and in a subject matter so extensive, complex and interdependent that the human mind can hardly begin to grasp it.’
‘I would like to make an appeal for:
* A Ministry for Information Science and Technology.
* Observers and spotters who scour the world in search of new possibilities (similar to purchasers of department stores).
* TV programmes and special newspaper pages about new developments in the area of information technology in order to spread the message widely and limit the chances of reinventing the wheel.
* National and regional advice centres to support high-tech and “new knowledge
* A yearly event where high-tech starters and “new knowledge
” pioneers can present their knowledge and expertise.
* Faster acceptance and integration of the “new knowledge”.’
‘We are leaving the industrial era to enter into the digital era; the era of knowledge and information technology. We have the opportunity to take our thinking to a higher level and accelerate our actions, resulting in unimagined possibilities. This would, however, mean seizing the opportunities the information era offers.’
The New Epoch: A Miracle for Economics?
Investors’ Day, Berchem, Belgium
‘There is only one financial world market … Insight into this network of relations is possible only with the help of the new knowledge technology …’
‘Wake-up call for banks and investment institutions: make it possible for analysts and students to develop new investment strategies.’
‘Top 10 of stock market ‘truths’ that do not seem to be true: 1. Efficient market.’
Investing via the Internet
Euroforum, Amsterdam, The Netherlands
‘I predict that this transition from the automation to the information era will have significantly further-reaching consequences than the industrial revolution in the last century. And that will apply above all to the financial world because, with the rise of the ‘diginomy', the time has come in which we will have to throw all the old investment models and our beliefs about them overboard.’
‘Why are you investing with models and theories that don’t work? My contribution for today is informed by my urgent desire to warn you about what is hanging over us all and what is still – consciously or unconsciously – massively underestimated by the vast majority of people.’
‘From the year 2000, everything will move 10, 100 or 1,000 times as fast and, naïve as we are, we still absolutely do not realise it.’
‘The slow-motion era is over.’
‘It will not be long before a major bank can reach millions of customers worldwide with one click. And if that one click sends out bad advice, it could have dramatic consequences for the world economy, because if a large number of customers follow bad advice at the same time, there is no telling what the effects might be ... Whole countries could become the victims of their arbitrary impulses. And so gradually the danger draws nearer of wars no longer being fought on the battlefield but on the internet as cyber war.’
‘... the pension funds will have to adopt a new course within the new landscape of the digital age in order to optimally manage their pension assets because this is where the lag in accepting new technologies is greatest.’
Ancient Wisdom and 21st Century ICT: Decoding the Hidden Structure of the Universe
Koornwinder Cnvention, Hotel The Grand - Amsterdam, The Netherlands
'Let us do away with the old systems and the old investment models. They have had their time and must be superseded in the light of all the disasters that we have been experiencing in the recent past, without an end in sight. Our economic and financial systems must become more reliable and work for everyone rather than only for the very few who are able to speculate on the movements of the market. Let's pay heed to everyone's interest.’
The Hidden Structures of the Universe
Circles of Knowledge Conference, Marlborough College, England
‘Sadly, [my] warnings from 20 years ago with regard to the utter inadequacy of the models came true, and I say sadly because it came at the expense of those who entrusted their money to the experts for an informed and reliable management
… The use of the much-discussed financial models is to be blamed for being the source of it all. Yet they are still being used widely. They lack in sophistication and are simply useless in risk determination
… The question is, if we can, after an economic crisis of the worst dimensions since the Depression, with any sense of fairness and responsibility, still subscribe to these investment practices that have failed us so badly. We have all been hit by the catastrophe.’
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