Ups and downs of economics and econophysics - Facebook forecast

► The paper discusses “econophysics”, the interdisciplinary field of physics and economics. ► The tools economists have are not good enough to enable prediction of market crashes. ► The next paradigm should acknowledge markets as chaotic systems, striving to extremes. ► Models of statistical physics can probably help in solving the economic problems. ► Test of valuation methods indicates that Facebook is highly overvalued.