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This is much like saying that Smith & Wesson shoots people.
by carbocation 17y ago
This is much like saying that Smith & Wesson shoots people.
- fauigerzigerk 17y agoNo, it's like saying the architect who built the house that collapsed in an earth quake must take some blame, not just the company that funded the building. And I agree with that. The models were brittle and the math/CS people who created them will have to take responsibility for that. Obviously there are others who must share that responsibility.
- aaronblohowiak 17y agoThe decision to massively dump positions was a human one. This is just another example of what happens when you get a bunch of independent agents with imperfect information scared -- they cut their losses. In a market, this triggers a spiral effect of lowering prices, encouraging more people to cut their losses. Wether this is automated or manual, this is not a new thing.