
Recipe for Disaster: The Formula That Killed Wall Street  - nickb
http://www.wired.com/techbiz/it/magazine/17-03/wp_quant
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kqr2
Interesting commentary on the Gaussian Copula Formula in _2005_ :

[http://infoproc.blogspot.com/2005/09/gaussian-copula-and-
cre...](http://infoproc.blogspot.com/2005/09/gaussian-copula-and-credit-
derivatives.html)

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jibiki
It's interesting that Li himself thought knew traders were trusting the model
too much. In theory, this knowledge could have made him a lot of money, but in
practice it's probably difficult to correctly short the market (since he
couldn't really know when the collapse was coming, or how big it would be.)

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biohacker42
I've red numerous Wired articles which have butchered subject matter I am an
expert on.

And this has completely turned me off from reading Wired articles on things I
am interested in, but don't know enough to know when they are oversimplifying,
embellishing, or just plain getting things wrong.

I tried reading this, because I do want to know, but I got that sinking
feeling of being BSed and gave up.

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gaius
Kinda reminds me how everyone demonized Black-Scholes when LTCM collapsed.

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jdrock
Is it the formula that killed Wall Street or an inability or unwillingness to
recognize its limitations? Sounds like the latter.

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andylei
i'm generally skeptical when people claim they have discovered the single X
that caused Y, especially when Y is this particular Wall Street collapse. i
don't think this article gives a particularly convincing argument about why
this formula single handedly "killed Wall Street".

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djahng
the formula seems to be missing a closing parenthesis

