CHAPTER 35The Structure of Future Finance: Lessons from a Mathematical Landscape

Underappreciated volatility and overreliance on imperfect models are the scum floating on the swimming pool of “Meltdown 2008.” While this statement may deflate some self-important egos and infuriate math phobes alike, what quants do wasn’t really central to the meltdown at all. Such things as copula arguments are mere technical adornments to a collateralized debt obigation (CDO) feeding frenzy.

Sort of. All the “mathiness” signifies a deeper issue: the habit of grabbing hold of ideologies and running as fast as we can with them, right over the cliff. There is a stubborn inability to see beyond preconceived notions, a faith that the part of the iceberg we see is ...

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