An intriguing look at how financial models have repeatedly failed our markets, including now Leading and contrarian thinkers have been talking for years about the conflicts between theoretical and real finance. Nassim Taleb first addressed the issue in his technical treatise on options, Dynamic Hed[...]
This critical examination of the Value at Risk (VaR) measurement tool, largely responsible for the credit crisis, denounces the role of regulators and academics and describes how bonus-hungry traders used this risk measurement tool to make reckless bets.[...]