Quantitative Echoes

Heard through the media grapevine after 1997 Asian crisis and 1998 LTCM crisis (which almost destroyed the system):

"The answer is not to reject quantitative finance but to be honest about its limitations. Models have their places but they must be coupled with more subjective approaches to risk, such as stress tests and scenario-planning"

Heard through the media grapevine after 2008 credit crisis (which destroyed the system and almost caused a global depression):

"The answer is not to reject quantitative finance but to be honest about its limitations. Models have their places but they must be coupled with more subjective approaches to risk, such as stress tests and scenario-planning"

To be heard through the grapevine after 2015 sovereign debt CDO crisis (which would do away with the euro, result in the acquisition of Greece by private equity funds, and force President Palin to expulse California from the Union):

"The answer is not to reject quantitative finance but to be honest about its limitations. Models have their places but they must be coupled with more subjective approaches to risk, such as stress tests and scenario-planning"