veerar

How Wall Street Lied to Its Computers – another nyt aritcle

In Money on September 19, 2008 at 05:29

Another nyt article. This time in the Bits Blog section of all places. Anyway, more reasons why the models failed:

  • The models looked at years of history instead of a few previous months. This makes no sense to me: “There is no data like more data” and all that.
  • The products were so complex that no one knew how to assign risk to them.

The article concludes that the blame also falls on the experienced non-quants in these investement banks for improper supervision.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: