Consumers, financial institutions, and most importantly regulators did not understand the risks being taken in the financial markets. That was one of the main causes of the current financial crisis according to the Government white paper, Reforming the financial markets, released last week. It is clear to all players in the financial market that they need to make more accurate assessments of the risks they and others are taking. But will they be able to take the more scientific approach needed for a deeper understanding of financial risks, when they were so easily bewitched by unproven claims that you can turn financial lead into gold?
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posted by Plus @ 10:22 PM
- At 10:46 AM, Ron Smith said...
Happy to know about maths all over the world.
- At 10:58 AM, Derek Grainge said...
Yes we're in crisis - but this started with sub-prime and mortgage transactions in the USA, and we got sucked in as has everyone else because we're all hanging on their coat-tails.
And the USA does have proper scientific representtion in Government.
I agree with your comment about Alchemy, but you are almost implying that we might have avoided the crisis with a proper scientific adviser in the UK: desirable as it might be, this is a non-sequitur.
- At 3:38 PM, said...
Sounds like the markets became the meerkats...
...case of never mind the maths, just feel the profit...
There have always been bubbles - wonder what the next one will be?