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Saturday, January 18, 2014

Money has fascinating mathematical properties ( Bernie Madoff scheme )



     In a letter published January 15 Robert E.Sandberg is concerned along with Electric Boat's Jeffrey Geiger about R.I. students " lacking technical math and science skills ". As an employer himself he calls for a " shakeup of the educational system ".   So  let us " get rid of educators " who fail to deliver a quality product ?   I don't think it is the fault of fine teachers if they are not also motivation experts.   What can possibly make up for real enthusiasm and interest  for  seemingly dry as dust math and science subjects ?  How can you get a bright-normal kid to spend an hour or two alone in a quiet room with a  heartless math text  ?
          A  gifted high school math teacher -knowing his students are mainly interested in money and jobs - might point out to them that money in itself as an abstract means of exchange has fascinating mathematical properties. What you can do with money - no matter how dishonest you're willing to be- is limited by money's abstract properties.
             The man who exposed the world class swindler Bernie Madoff-guilty  of the largest financial fraud in history- Harry Markopolos-on CBS's 60 Minutes explained how he was able to figure out  Madoff's scheme before anyone else:  "   You would never expect him of fraud. Unless you knew the math ", Markopolos said " It took me five minutes to know that it was a fraud ".
              Here a surprise to high school students : " I 've taken all the calculus courses , from integral to differential calculus, as well as linear algebra. And statistics, both normal and non-normal.  " says my nerdy hero .  A lot of this stuff  is taught  at any community college. I suspect two years of high school algebra  might suffice to sniff out many cases of big-time financial fraud.
               But  also a little 19th century physics immediately gets us to the heart of  Madoff's heartless crime.  Recall the grand  Law of Conservation of Energy ?  To put it simply : you can't get something from nothing ! 
                Try this approach you depressed math teachers out there. Soon you might be surprised with a Golden Apple Award  and TV fame for a day.   And take more rigid math courses all you Rhode Island high school kids.    And see  how quickly you can also figure out your future  state and federal unemployment benefits. Knowledge is power-even if ignorance is bliss!

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Ron