How new theories in human information processing explain the meltdown on Wall Street
Response to The New York Times article on Wall Street Risk by Joe Nocera (1/4/2009)
In The New York Times Sunday Magazine section Joe Nocera produced a column that was important, well researched and insightful on how computer-based decision tools (VaR models) led Wall Street down the path to near ruin. However, Mr. Nocera missed an important, deeper point that is impacting critical analysis of what actually happened on Wall Street that allowed these seemingly intelligent executives to continue to pile on massive levels of risk long after they should have known better.
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