ABSTRACT Banks provide a valuable but inherently unstable combination of deposit‐taking and lending functions that were successfully held together for several decades after the New Deal by tough banking rules. The weakening of the rules after the 1970s promoted the displacement of traditional relationship‐based banking with securitized, arms‐length alternatives that encouraged banks to undertake activities about which bankers lacked deep relationship‐based knowledge of the risks. Ironically, this risky behavior, encouraged by loosened regulation, was reinforced by progressively tightened securities regulation, which (...) promoted stock‐market liquidity but also deprived large banks (and other publicly traded companies) of oversight by investors with “insiders’” knowledge. Both the underregulation of banking and the overregulation of securities were underpinned by economic theories that favored blind diversification in liquid, anonymous markets, and that ignored the value of relationship‐based knowledge and case‐by‐case due diligence. (shrink)

Diagrams are a form of spatial representation that supports reasoning and problem solving. Even when diagrams are external, not to mention when there are no external representations, problem solving often calls for internal representations, that is, representations in cognition, of diagrammatic elements and internal perceptions on them. General cognitive architectures—Soar and ACT-R, to name the most prominent—do not have representations and operations to support diagrammatic reasoning. In this article, we examine some requirements for such internal representations and processes in cognitive (...) architectures. We discuss the degree to which DRS, our earlier proposal for such an internal representation for diagrams, meets these requirements. In DRS, the diagrams are not raw images, but a composition of objects that can be individuated and thus symbolized, while, unlike traditional symbols, the referent of the symbol is an object that retains its perceptual essence, namely, its spatiality. This duality provides a way to resolve what anti-imagists thought was a contradiction in mental imagery: the compositionality of mental images that seemed to be unique to symbol systems, and their support of a perceptual experience of images and some types of perception on them. We briefly review the use of DRS to augment Soar and ACT-R with a diagrammatic representation component. We identify issues for further research. (shrink)