Monday, March 30, 2009

Math Can Do Anything?

Can math better predict financial markets? IBM seems to think so. Maybe they've missed this whole global financial meltdown thing. Or haven't had time to read Nassim Taleb's Black Swan. If they had, maybe they would have noticed that an over-reliance on financial models that turned out to have little predictive value played a key role in helping traders justify the insane bets they were making both to themselves and to their shockingly negligent risk managers. Floyd Norris nails it: this commerical makes IBM look really stupid.

No comments:

Post a Comment


Wikinvest Wire