Tuesday, March 10, 2009

What Do You Call a Nerd in Ten Years?


Source here.

It's a story about Quants, yes the math genius/nerds (delete whatever is appropriate) that have some commentators blamed them for indirectly causing the current financial mess through their math models which help create all the complex financial products.

But if math geeks and their models were indeed the source of the current problem, how reliable would it be now that governments all over the world are using similar models created by the same geeks to help assess whether banks are viable (the US Treasury is stress testing the major banks as I type and I know as a fact that HKMA, the local banking sector watchdog, asks local banks to perform such stress test all the time).

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