How Wall Street Lied to Its Computers - Bits Blog - NYTimes.com - The Diigo Meta page

• 05 Jan 15
  

  diigo user

  SAUL'S.WRITING Saul-NYT.Articles SH

• 10 May 10
  

  Giorgio Bertini

  That’s what has been running through my head as I watch some of the oldest and seemingly best-run firms on Wall Street implode because of what turned out to be really bad bets on mortgage securities.Before I started covering the Internet in 1997, I spent

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• 02 Oct 08
  
• 01 Oct 08
  
• 29 Sep 08
  

  article technology computers finance for:e_strategy.com

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  anthony wheeler

  "[S]ome trading desks took the most arcane security, made of slices of mortgages, and entered it into the computer if it were a simple bond with a set interest rate and duration. This seemed only like a tiny bit of corner-cutting because the credit-rating

  technology economics business computing

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  via:NYTimes finance business economics trading isotope analysis quants risk risk-management computer modeling betting wall-street interesting

• 28 Sep 08
  

  ...most Wall Street computer models radically underestimated the risk of the complex mortgage securities, they said. That is partly because the level of financial distress is “the equivalent of the 100-year flood,” in the words of Leslie Rahl, the preside

  personalfinance investing quants 4blogging

• 25 Sep 08
  

  Mike Barone

  technology risk news wallst riskmanagement economy from:del.icio.us

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  Jim McGee

  An interesting and insightful analysis to remind us that GIGO (Garbage In, Garbage Out) is still a relevant bit of advice to keep in mind as information systems become more sophisticated and more tightly embedded in organizational decision making. No matt

  pinboard technology risk quants

• 23 Sep 08
  

  michaelnova
• 22 Sep 08
  

  tgillin

  crash_of_2008

• 19 Sep 08
  

  FK_name FK_name

  escapade

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  • escapade
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  wind ch

  Almost all of these risk models significantly underestimate the probability and magnitude of rare tail events. Also, they mistakenly assume that assets that have appeared to have low correlations during normal times will continue those relationships durin

  quants timeline

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  JimC Rast

  subprime mortgage crisis quants managing risk

  • The reason Goldman Sachs escaped unscathed was because their models were not fiddled with.
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  jkoliver1

  08 panic

• 18 Sep 08
  

  ihuston

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  Brian J

  econ

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  Erick Sanchez
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  gjlutz

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  Jill ONeill

  The people who ran the financial firms chose to program their risk-management systems with over-optimistic assumptions and to feed them oversimplified data. This kept them from sounding the alarm early enough.

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