Sunday, September 21, 2008

Rocket science finance

Old but interesting: my Insight magazine article on derivatives from 1994. Opener:
They are called "rocket scientists" - financial experts who use innovative and arcane mathematics to weave complicated schemes for making money. Their skills are in high demand at the nation's banks and brokerage firms, but their handiwork is not universally admired. In Congress, concern is growing that one of Wall Street's most lucrative lines of business could bring on a financial crisis that, like the savings and loan debacle, would leave taxpayers stuck with the bill.

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