"To confuse the model with the world is to embrace a future disaster driven by the belief that humans obey mathematical rules." - The Financial Modeler's Manifesto, Emanual Derman and Paul Wilmott
"To confuse the model with the world is to embrace a future disaster driven by the belief that humans obey mathematical rules." - The Financial Modeler's Manifesto, Emanual Derman and Paul Wilmott
One of the (few) benefits of leaving a perfectly functional Street job is that I'm now free to have a free dialogue with the free press using my now free(er) speech. To that end, I decided to engage the NYT a few weeks back regarding Gretchen Morgenson'sThe Swaps That Swallowed Your Town article. This is the first of 3 posts recounting the transcript as surprisingly, they did engage.
Topics: swaps, libor, municipal swaps, hedging
