Most of us realize that a virtual world is not the real world. Yet, the banking world, which sees itself as a collegial group that is smarter than the rest of the business world, apparently ignored the many uncontrollable constraints in the real world that are nonexistent in the virtual world of the mathematical models of the “quants.” Quants are at the helm of Power Driven Trading using brain-twisting math and super-powered computers to create virtual financial products minus real world constraints and a willingness to see responsibility only as a one-way street.
Much has been written about the quants impact on Wall Street, but most of us may not have the time or motivation to take on the topic. However, this video, Quants: The Alchemists of Wall Street, on YouTube. I would caution the viewer to keep in mind that this informative video is a helpful perspective, but not to conclude that quants caused the financial crisis.
kenne
