The formula that killed Wall Street

Blah99

I just scanned and uploaded this excellent article for your perusal. It's an explanation of how CDOs came into existence and how the fundamental flaw in the underlying maths has caused the current market chaos.

In the mid-'80s, Wall St turned to the quants - brainy financial engineers - to invent new ways to boost profits. Their methods for minting money worked brilliantly... until one of them devastated the global economy.

I had to put it on RapidShare as I have nowhere else to keep it. If someone wants to transfer it to a better location and post a link, feel free.

You'll need to click the "Free User" button and then wait for the timer to download it. 1.03mb. It's absolutely worth the wait.

http://rapidshare.com/files/214673156/Wall_Street.pdf

zedyy

Thanks, will read later.

Paul_Herring

Vaguely related, for those that haven't seen it yet: Crisis of Credit

Blah99

Just bumping this as it went off the end of the forum very quickly. A worthwhile read indeed.