Back in my formative years, during the tail end of the S&L
crisis, I spent quite a bit of time working on financal software,
including asset-liability management, risk management, and pool
selection for the securitization of assets.
Although I’m a ‘data’ guy, for a layman I have a fairly good
understanding of risk management in the financial industry. A
side effect of that understanding is that I’m been following the
ongoing risk management fiasco with more than a passing interest.
(The media might call it a ‘credit crunch’ or a ’subprime
contagion’, but as far as I can tell, it all boils down to a lack
of attention to risk.) It’s also turning out to
be a good source of entertainment.
Last week, …[Read more]