Archive for the ‘Computers Run Amok’ Category

The Financial-Crisis-Related Legal Investigations of Rating Agencies: Another Dry Hole

Saturday, February 9th, 2008

In an earlier post, I predicted that law suits against financial institutions flowing from the Subprime Mortgage Crisis will come to nothing. Not because the targets were not guilty of fraud. On the contrary, because they are guilty of fraud that had been encouraged by federal bank regulators, who are ...

Is Financial Engineering Dead?

Sunday, December 30th, 2007

The answer is no. But a thing that many financial specialists associate with financial engineering is dead. I call it financial numerology. What I am talking about is the use of analytical methods to reach conclusions that do not spring directly from good old assumptions of investor rationality; or at ...