Mistakes Were Made

Math–So Evil!–Destroys Young, Stupid Business

Do you know why investment banks and hedge funds and insurance companies actually work? If you just said "LAWYERS" or "THE FED WINDOW," you are technically correct. But on a more fundamental level, it's because there are thousands of Ivy League children assiduously doing math all day. These firms are the nation's number one consumer of nerds, and that is why, in the end, great amounts of money are made. (Though it's never the nerds that get the big bonuses, which is a shame.) So when businesses try to rip off a model—for instance, the fine people who mixed viatical settlements with derivative instruments, that is to say, [...]