I was looking on Google News for my blog post for today and immediately was drawn to this article.
I found tha some so-called bad data hurt Wall Street – not good. Alan Greenspan called it a once in a century ‘tsunami’. He blamed the ‘tsunami’ on inadequate data. As you probably know, computer technology is a very important part of Wall Street in more ways than one. Crashes in computers do not happen very often with the technology that Wall Street has, that is why it was such a problem.
”Business decisions by financial services firms were based on “the best insights of mathematicians and finance experts, supported by major advances in computer and communications technology,” Greenspan told the committee. “The whole intellectual edifice, however, collapsed in the summer of last year because the data inputted into the risk management models generally covered only the past two decades a period of euphoria.”
– THe above quote is from The New York Times 10/23/08
Those working at Wall Street are trying to figure out how to fix this and how to prevent it from happening again. The only suggestion as of now is to have ‘more aggressive law enforcement.’
What would YOU do?
Tags: http://www.nytimes.com/external/idg/2008/10/23/23idg-Greenspan-Bad.html
