Thursday, September 25, 2008

The blunders that led to the banking crisis

I always like to see what NewScientist has to says about different issues. Because of this, I was happy to stumble across The blunders that led to the banking crisis.

The article talks about the way that banks and/or financial institutions go about measuring their risk. It also talks about how their models completely failed to represent complex financial instruments such as bundled home loans.

Anyway, I thought it was a good read.

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