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.


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