Friday Movie Night - Mathematial Models the Financial Crisis Bad Guys?

hot buttered popcorn It's Friday Night! Party Time!   Time to relax, put your feet up on the couch, lay back, and watch some detailed videos on economic policy!

 

Below is a talk on the actual mathematical models behind credit default swaps, credit default obligations and a very "Pro" Quant MIT Professor, Dr. Andrew Lo describing the mess. Here are some slides from a talk on the same topic. Now I do blame the mathematical models themselves, sorry we've looked at the mathematics, but this guy is a Financial Engineering Professor, so listening to his views and insights one must, as well as not discredit human nature as he points out. Lo has also testified before Congress on systemic risk. Here is the actual testimony with select quotes extracted and Baseline Scenario pulling out some quotes as well.

Are Mathematical Models the Cause of the Financial Crisis in the Global Economy?

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