The Bright Coast

Progressive Thoughts from San Diego Alums on Law, Politics, and Culture

Facebook says I should sell Lehman.

Posted by etechx on September 14, 2009

Well it has been about a year since Lehman declared bankruptcy, and now many “financial engineers” are admitting their predictive models were off considerably from the real world. In fact, many of them are currently trying to adapt human behavioral models to their financial models to better predict real world market scenarios. The move seems so obvious that it makes me question why this model wasn’t researched and put into place well before the crisis. It would seem that the monetary advantage of having a more realistic model would have been enormous and something even Lex Luthor would envy.¬†Unfortunately, this article might have answered one question, but like a Lost episode it just generated a hundred new ones.

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