Friday, September 19, 2008

How Wall Street Lied to Its Computers

New York Times, September 18, 2008

How Wall Street Lied to Its Computers

By Saul Hansell

This is an example of what can happen when people and computer models interact. It exposes both deficiencies in the models in dealing with extreme situations, and people's willingness to override the model if it gets in their way.

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