A mixed bag but interesting and worthwhile read on the role of Quants on Wall Street over the years. The take away - the Math never supported the work to the extent it might have, though it brings value to the table and shows no signs of a reversal in role. Were some Quants less than candid about the limitations of what they were producing, or were they clear but either manipulated by, or sucked into a realm that deals with profit, not scientific truth? Depends on who you ask.
They are known as “quants” because they do quantitative finance. Seduced by a vision of mathematical elegance underlying some of the messiest of human activities, they apply skills they once hoped to use to untangle string theory or the nervous system to making money.
This is the same reason that Liberalism fails. The underlying theory is wrong so everything that comes from it is wrong. Human nature never changes. It is hard wired into our DNA. No matter what people think you can not quantifiy it. It all depends on the exact conditions on the ground at the exact time. No two events are alike and therefore all events are different. It is basic logic. sure you can get around the ballpark but to base you entire finacial system on something that can not be 100% correct is beyond stupid. And we see the results of that stupidity
Posted by: unseen | Thursday, March 12, 2009 at 02:12 AM