No Magic Beans, No Magic Formulas

magic beansBlame for the global financial crisis has been cast upon government leaders, bankers, home owners, and quantitative analysts. In fact, mathematical models and formulas such as Black Scholes, Gaussian Copula, and VAR have received particular attention as culprits in this financial mess. And while these financial models had flaws, a more egregious error was the blind faith and lack of critical thinking in the adoption of these models.

Executives are realizing that when it comes to modeling complexity—there are no magic beans, there are no magic formulas. But have we learned these lessons too late?  read more


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s