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, …
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