2 ms·

I'd love to see a reference on that Challenger remark -- seriously.

• smanek 18y ago
  http://www.scribd.com/doc/8142600/the-Stock-Market-Reaction-to-the-Challenger-Crash http://www.scribd.com/doc/8142600/the-Stock-Market-Reaction-... Sorry for the scribd link. It's the first copy I found that wasn't behind a pay wall. The gist is that within a few hours of the Challenger crash the stock for the company responsible for the component that failed went down far more than the stocks for other companies involved in building challenger. Interestingly, the equity value the stock lost (~200 Million USD) is almost exactly the same as the estimated total loss in profit (fines, lawsuits, updates to safety standards, lost contracts, etc).
  • ryanwaggoner 18y ago
    Hmmm...so traders had a 1 in 4 shot of picking the correct company and they happened to do so? I remain unconvinced. I also remain unconvinced that this data is useful. It's not like we should let trader behavior influence safety investigations, right?
    • smanek 18y ago
      Go read "The Wisdom of Crowds" - it is chock full of examples like this. No one is saying we should use markets for safety investigations - we are saying that we should use it predicatively.