Showing posts with label scholasticism. Show all posts
Showing posts with label scholasticism. Show all posts

Monday, October 28, 2013

Philosophy - Scholasticism

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The Scholastics
Scholasticism sought to justify rationally what the church had already accepted.
Platonic period of medieval philosophy (529-1200); and the Aristotelian period (1200-1453)
Two fundamental problems (1) the problem of universals as objective realities  (2) the problem of logical proofs for the existence of God.
John Scotus Erigna (810-877) - the universal is the essence of reality; the more universal an object is, the more real it is; essence precedes existence
universalia ante rem - the universal is prior to the particular thing
The assumption that universals exist as objective realities is the principal thesis of Scholastic Realism
St Anselm (1033-1109) - his ontological argument: since we possess an idea of a perfect Being, such a Being must necessarily exist because perfection implies existence.
- inasmuch as some things possess more goodness than others do, there must be an absolute good (Summum Bonum), a standard which can be used to evaluate their comparative goodness.
Anselm formulated his Christological theory of satisfaction in an attempt to reconcile the apparent inconsistency between the ideals of divine justice and divine goodness.
Credo ut intelligam - I believe in order that I may understand
Universalia post rem - the universal exists after the particular thing; existence precedes essence
Nominalists (1100), Roscellinus - reality is found in the sensory world, not in the ideal world.
Tritheism - the three persons of the Godhead are actually three separate Gods.
- the universal of something is nothing more than a flatus vocis (oral word).
Peter Abelard (1079-1142) - advocated an appeal to reason (not faith or authority) as a proper means of arriving at the truth.
Intelligo ut credam - I understand in order that I may believe
- there is no sin in doubting, because the person who doubts is led to enquire about the truth.
- morality is not simply a matter of act also the intent that motivates an act.
Conceptualism attempted to synthesize the opposing views of the Nominalists and the Realists by means of rational comparative enquiry.
Arabian philosophers had preserved Aristotle’s work until it was translated from Greek to Latin in the 12th Century, whereby it was acclaimed as a criteria of truth.
St Thomas Aquinas (1225-1275) - founder of Dominican order; he organised a philosophical system designed to establish the fundamental rationality of the world as God’s revelation.
- revealed teachings cannot contradict the laws of logic, since would negate the attributes of God.
- since all truth comes from God, the nature of its transmission (reason or revelation) doesn’t matter.
Thomas synthesized both Anselm and Abelard by accepting both propositions.
Thomas posited that God created the world ex nihilo (out of nothing).
God is not only the first cause, but also the final cause (the purpose of existence).

Arguments for God’s existence (1) motion or first cause   (2) efficient causality  (3) possibility and necessity   (4) degree of perfection  (5) design or purposiveness

God’s grace can function only if the freewill of man assents.

Thomistic ethics - God created everything for a definite purpose.

- evil is not a substance with its own essence, but rather is a lack of good.

- everything seeks its own good as its own aim

- no one desires evil, they only misconstrue it as good for themself.

virtues function to direct man toward his own good, namely God

theological virtues - faith, hope and love

ethical virtues - temperance, courage, prudence and justice

intellectual virtues - wisdom, science and understanding

- the contemplative life is the highest and best, brings us closest to God where the soul unhampered by the senses can enjoy God in deep mystical contemplation

The goal of the State is to achieve the common good, to establish peace and security, and to protect against enemies.

Democracy is not to be practiced because it goes against nature, some are born superior and others inferior.  Monarchy is the preferred form of government.

- societies/communitie are established by God for Man’s own good, therefore one should obey the law’s because they ultimately have originated from God.

The church is the superior of the two divinely established social institutions (the other is government).

John Duns Scotus - denied the primacy of the intellect over the will, attributed to the will decisive control over the intellect; monk of the Franciscan order.

- philosophy must be subordinated to theology because natural reason is incomplete unless aided by revelation.  Logic can neither prove or disprove questions of faith.

accidental creation - it was not necessary for God to create the world the way it happens to be or to create any world at all.

- whatever God wills becomes good automatically by virtue of his willing.

William of Occam (1280-1347) - a Franciscan student of Scotus, constructed his philosophy on the premise that only particulars exist, the universal is a mere abstraction

scientific agnosticism - science cannot gain truth or knowledge; if scientific laws are not universal principles but only works identifying a number of individual things, then universal laws of science do not exist.

God must be accepted on the basis of faith not proof, because theological beliefs are not subject to demonstration.

Occam’s Razor - hypothetical realities must be kept to a minimum, the simplest explanation is the best.

real science - pertains directly to individual real things.

rational science - deals with abstract concepts without direct sense data.

Philosophy - Early Christian Philosophers


Early Christian Philosophers
Philo, Justin and Gnostics - no specific qualities should be predicated of God because they are all too delimiting.
Christian philosophers conceived of God as a spiritual personality, as an infinite Being bearing a personal relationship to Man, as a Being whose personality finds its image in Man.
Christians regarded persons and interpersonal relationships as the very essence of reality.
Plotinus (204-269 AD) student of Athmonius Saccas founder of the Alexandrian school of Neo-Platonism an eclectic mix of Plato, Aristotle, Neo-Pythagoras and Stoicism.
- fundamental principle the doctrine of the transcendence of God
- soul is liberated from the material world through asceticism and can be transported mystically to a state of rapturous ecstasy in contact with the divine.
Patristic philosophy was the body of philosophical doctrines accepted by the Fathers of the early Christian church [ante nicene and post-nicene: Council of Nice 325 AD].
- early Christian philosophers were called Apologists because they devoted most of their time to the philosophical defense of the Christian faith against the claims of secular philosophy and Gnosticism.
Ante-Nicene} Hellenic School: Justin Martyr (150 AD), Felix (200 AD), Aristides, Theophilus, Melito     ===> African School: Tertullian (165-220 AD), Arobius of Numidia (290) - renown for their anti-rationalism, sceptical attitude toward reason, in order to establish the supremacy of faith.
Alexandrian School: Clement (150-220), Origen (185-254)
Christian philosophy was dominated in the post-Nicene period by Augustine (353-430).
Augustine subordinated philosophy to Christian doctrine (laid foundation for medieval philosophy).
- the Scholastics (Middle Ages) sought to resolve the conflict between faith and reason.
Origen - founder of Christian philosophy set on the basis of the Bible and the Regula Fidei (rule of faith as taught by the church or church council)
- matter is changeable and perishable, but the unchangeable God is everlasting (eternal)
- the Logos is not the God who participates in creation; a personal copy of God.
Man’s fall is attributed to his misuse of his freedom of will.
Man aspires through use of his freewill to attain salvation with the assistance of the Logos.
Two fundamental criteria of truth underlie the entire philosophy of Augustine: (1) The authority of the church, (2) The certainty of conscience (knowledge which man actually funds in his inner experiences (memory, intellect and will)).
- incongruities sometimes become evident when church doctrines cannot logically be reconciled with the dictates of reason (inconsistency between his theology and philosophy).
Augustine’s arguments against Skepticism used the experience of uncertainty and doubt as a logical defence for the existence of certainty and absolute truth.
God’s personality: omnipotence, omniscience, absolute goodness.
God created ex nihilo, therefore all natural things are good.
- sin impairs the natural process, attributable not to God but to the will of Man.
Fall of Rome (476) to Charlemagne’s coronation (800) } The Dark Ages

Sunday, October 27, 2013

A Developing Thought - Traditional Security Analysis as Scholastic Philosophy

In the same way traditional security analysis sought to justify rationally, ie. put a structure around, what the marketplace already accepted so Scholasticism sought to justify rationally what the church had already accepted.

The main schools of thought during the scholastic period were universalia ante rem (essence precedes existence) and universalia post rem (existence precedes essence) arguing over what came first or what comes first, essence or existence. The same can be applied to security analysis with regard to whether fundamental value comes first or market price comes first.

In the ethical/moral realm scholastics guiding light was summum bonum (absolute good) as the yard stick for devining whether something was good (a relative value basis). In security analysis there is the implied belief that there is some fundamental/intrinsic value based upon some as yet unknown future set of cash flows discounted at an appropriate rate that equals an assets true value (absolute value) which can then be compared to its current market price to determine whether it is undervalued or overvalued.

This is still a developing thought, but one I hope to explore a little more in the future.

Likewise, modern finance (Modern Portfolio Theory, Efficient Markets, CAPM) may be equated with the philosophy trends of the enlightenment (especially Hume's rationalism), and recent developments in finance practice (HFT, quantification, algos) may be equated with quantum physics or existentialism.