Blame the models. Jon Danielsson.

Blame the models

May 8, 2008
In response to financial turmoil, supervisors are demanding more risk calculations. But model-driven mispricing produced the crisis, and risk models don't perform during crisis conditions. The belief that a really complicated statistical model must be right is merely foolish sophistication.

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Models and risk
Bloggs and appendices on artificial intelligence, financial crises, systemic risk, financial risk, models, regulations, financial policy, cryptocurrencies and related topics
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