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  • Recipe for Disaster: The Formula That Killed Wall Street

    It's the Black-Scholes model that frightens me. (Fischer Black and Myron Scholes) I don't understand the math behind it. Billions upon billions of dollars have been put at risk by a theory that, in the long run, may prove untenable. I think we will all need a little luck to keep the... more

    Reviewed by BjornAntonio Mar 03 2009, 11:26am ( 17 reviews ) • wired.com

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  • Rated by audacityofhope on Mar 31 2009, 7:15pm

    Excellent article on the root cause(non-greedy) of financial crisis

  • Rated by chonto on Mar 11 2009, 8:07am

    Finally the formula that failed in Wall Street is well explained

  • Rated by BjornAntonio on Mar 03 2009, 11:26am

    It's the Black-Scholes model that frightens me. (Fischer Black and Myron Scholes) I don't understand the math behind it. Billions upon billions of dollars have been put at risk by a theory that, in the long run, may prove untenable. I think we will all need a little luck to keep the system solvent over the next few years. That doesn't even take into account household credit card debt levels and the cascading effect on the economy when people stop paying their minimum balances and default. How much of the last 20 years of economic growth can be attributed to credit card debt and the use of home equity lines of credit? There may indeed end up being quite a few formulas that killed Wall street...

  • Rated by gingerken on Mar 01 2009, 10:07am

    This is important to read, critical thinking at any point in time might have prevented the disaster we are now experiencing.

  • Rated by sap-sandwich on Feb 28 2009, 11:04am

    Everyone should read this. Most basic explanation I can think of? Since the late 90s the American economy has essentially been running on imaginary money, and in the fall of 2008, it disappeared and everyone realized we don't have much real money left. That's a ridiculous oversimplification, though. You should read this Wired article all the way to the end.

  • Rated by traingolfguy on Feb 27 2009, 5:28am

    Here is a great description of how the financial world went south.

  • Rated by brianfrancis on Feb 26 2009, 9:08pm

    It is amazing to me that Wall Street has yet to take responsibility for the hole it has put this country in. Sponsoring golf tournaments? Expecting our money? And they did it all to themselves with crazy math schemes? All the bums need to go. Brian http://www.politicalinaction.com

  • Rated by spiggot123 on Feb 24 2009, 2:30pm

    Great article about the inventor of the lump securities market, which has led to the ultimate cause of the financial meltdown and recession we are experiencing all over the world.