An additional argument against BIG DATA, which people are starting to discover just now, is that there are about 35,000 different variables in economics and finance. And we have usually, less, much less than 10,000 data points per variable. This (plus fat tails) explains why econometrics has not been able to deliver.

(cont) To imagine how bad it can get, think that anyone with a good computer program can have access to at least 700 million correlations with just economic and finance variables.

via An additional… | Facebook.