financial crisis – Karthik Shashidhar

arbit, business, fundaes, work assumption, assumptions, attention deficit, bets, big picture, corporate ladder, corporations, digits, financial crisis, hyperactivity, hypothesis, initial reading, micromanage, middle management, mortgage market, orthogonal, promotion procedures, shortcoming, top management, zillion

Big Management and Big Picture

June 18, 2011

One common shortcoming that top management in a lot of companies is accused of is that they give too much attention to details (i.e. sometimes they micromanage), and they are unable to see the big picture. For example, if you think about the financial crisis of 2007-08, people kept making stupid bets about the mortgage…

business, finance, investment banking, randomness, work accuracy, assumptions, behavour, best efforts, business week, comprehension, disrepute, economy, elegance, emanuel derman, fellow, finance, financial crisis, lookout, mathematics, model makers, paul wilmott, profession, quantitative models, quants

Addition to the Model Makers Oath

March 22, 2011

Paul Wilmott and Emanuel Derman, in an article in Business Week a couple of years back (at the height of the financial crisis) came up with a model-makers oath. It goes: • I will remember that I didn’t make the world and that it doesn’t satisfy my equations. • Though I will use models boldly…

business, cricket, economics, finance, fundaes, investment banking, sport domestic cricket, financial crisis, investment bankers, laziness, pitches, quants, statisticians, television revenues, test cricket, tv rights, viewership

The Aftermath

January 8, 2009

Baada collaborated on the research leading up to his post. I hereby acknowledge his contribution and condemn his laziness for not blogging it himself. One of the major problems of the financial crisis that has been happening for about two years now is that investment bankers, as a profession, stand discredited. Before this, they used…