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Math got us into the financial crisis in 2008 That is a terrible misunderstanding of the 2008 financial crisis.
by codesushi42 7y ago
Math got us into the financial crisis in 2008
That is a terrible misunderstanding of the 2008 financial crisis.
- JudgeWapner 7y agothere's a charitable way to read that, which is that they did ample statistical modelling/risk analysis of CDS and "concluded" they were safe enough to bundle mortgage debt under. Then you could sort of "blame math" (or the abuse thereof) in that circumstance. I know CDS is only like 1/10 chapters of the whole crisis, however.
- arethuza 7y agoI thought using Gaussian copula for CDO pricing was often regarded as being an important factor in facilitating the crisis?