Quote:
Originally Posted by nmap
John Mauldin turns out an interesting newsletter on the subject - it can be viewed HERE |
Quote:
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"The tragedy of the worst financial crisis since the 1930s was enhanced by almost every investment bank, all rating agencies and all bank regulators using the same measurement and the same mathematical risk model for market evaluation of securities. This example shows how dangerous the use of the standard deviation based approach is. If most of the market participants make decisions based on the same risk control of a false distribution assumption, and oversimplified risk model, it could cause a complete failure of the system."
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Sounds like they didn't want to actually pay for actuaries.
There is a reason the testing process for actuaries is so difficult.
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Waiting for the perfect moment is a fruitless endeavor.
Make a decision, and then make it the right one through your actions.
"Whoever watches the wind will not plant; whoever looks at the clouds will not reap." -Ecclesiastes 11:4 (NIV)
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