The Rise of Financial Machines

This New York Times Op-Ed speculates that Wall Street geeks and ‘quants’ outsmarted themselves with computer algorithms to create the current financial debacle:
“Somehow the genius quants — the best and brightest geeks Wall Street firms could buy — fed $1 trillion in subprime mortgage debt into their supercomputers, added some derivatives, massaged the arrangements with computer algorithms and — poof! — created $62 trillion in imaginary wealth. It’s not much of a stretch to imagine that all of that imaginary wealth is locked up somewhere inside the computers, and that we humans, led by the silverback males of the financial world, Ben Bernanke and Henry Paulson, are frantically beseeching the monolith for answers.” Full Story

Advertisements

About Rich
FlexRex began his life as a cartoon character I created a Sun Microsystems. As the world's first "fictional blogger," he appeared in numerous parody films that made fun of the whole work-from-home thing. Somewhere along the line, the Sun IT department adopted FlexRex as their spokesman in a half-dozen security awareness films for employees. So when I left Sun recently, I started FlexRex Communications, a Marketing company in Portland, Oregon.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: