This is a New Scientist article from 27th October, 2008 http://www.newscientist.com/article/mg20026794.600-why-the-financial-system-is-like-an-ecosystem.html

It assesses the current financial crisis using complexity science. An idea I thought was interesting was the suggestion that over-connectivity contributed to the problem. MacKenzie argues that current financial models don't take account of interdependence, and that increased connectivity makes the whole system less diverse and therefore 'more vulnerable to dramatic shifts' (9) (this links to a discussion we are having within the project about resilience in relation to complex systems). Some complexity scientists, apparently, are arguing for the deliberate insertion of firebreaks designed to reduce connectivity; 'the heterogeneity of the system must be restored, says Levin. In other words, don't let everybody become part of the same pond, all following the same rules' (9).

They suggest that this is not an idea that  will be popular with the banking industry, which lost diversity and gained connectivity to cut costs and boost profits...' but such diversity is what allows ecosystems to remain resilient as conditions change; the same principle should apply to financial systems. Achieving this is likely to be difficult, not least because in a complex network like the financial system, no-one is in charge....' (9).

I thought the idea of overconnectivity was interesting in an intellectual climate where talk about connectedness and networks seems to be increasing in a variety of different arenas, often carrying the implicit assumption that connectivity is 'a good thing'.