I wrote earlier about the financial crisis blame. Certain people allowed a natural credit bubble to grow to unnaturally monstrous proportions.
A related but very different issue is what enabled the problem to grow--what blinded everyone to what was happening? My wife just sent me a great article that explains how the liquidity crisis came about.
The culprit was a math formula.
More specifically, too many people used the Gaussian copula function in ways for which it was never intended.
Remember, formula's don't kill economies, people do.
UPDATE: More on how CDOs enabled a mortgage crisis to expand into a liquidity crisis. And an article about just how much deregulation was to blame.
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