My Manhattan Project

[Richard]

And so it goes with a bit more of the story...

My Manhattan Project - How I helped build the bomb that blew up Wall Street.
Matt Osinski, NYMag, 29 Mar 2009

I have been called the devil by strangers and “the Facilitator” by friends. It’s not uncommon for people, when I tell them what I used to do, to ask if I feel guilty. I do, somewhat, and it nags at me. When I put it out of mind, it inevitably resurfaces, like a shipwreck at low tide. It’s been eight years since I compiled a program, but the last one lived on, becoming the industry standard that seeded itself into every investment bank in the world.

I wrote the software that turned mortgages into bonds.

The software proved to be more sophisticated than the people who used it, and that has caused the whole world a lot of problems.

http://nymag.com/news/business/55687/

Richard's $.02

[Roguish Lawyer]

What an idiot

Added to clarify -- he's full of himself and can't seriously take credit for the birth of securitizations

[nmap]

But counselor - if the gentleman wishes to admit liability, shouldn't some enterprising attorney help him expiate his guilt?

[GratefulCitizen]

Seems like he was saying that the tools were being misused, and then eventually were warped outright to justify wishful thinking (who doesn't want a money tree?).
Estimating future risk is a difficult science, but it is one which is well developed and, when used properly, is an invaluable tool.

I stand by my original assessment: http://www.professionalsoldiers.com/...38&postcount=4

Constraints have to be put in place or the estimations become impossible.
The insurance industry is strictly regulated for a reason.

This guy nails it: http://www.ianwelsh.net/how-to-refor...default-swaps/