[Off-topic] Financial wizards and software

[Robert Myers]

http://www.ft.com/cms/s/0/0c82561a-2697-11dd-9c95-000077b07658.html?nclick_check=1

<quote>

Moody’s awarded incorrect triple-A ratings to billions of dollars
worth of a type of complex debt product due to a bug in its computer
models, a Financial Times investigation has discovered.

<end quote>

This article has also been slashdotted.

I'm sure this wouldn't have happened if only the experts here had been
consulted, because such things never happen to them, and free markets
fix all problems.

It just *happened* that this error was timed to contribute to the debt
bubble, and the discovery of the error time to contribute to the
collapse. Oh, well. People get hurt, often through their pension
funds, but, you know what? Software happens.

Robert.

 

[Sebastian Kaliszewski]

http://www.ft.com/cms/s/0/0c82561a-2697-11dd-9c95-000077b07658.html?nclick_check=1

<quote>

Moody’s awarded incorrect triple-A ratings to billions of dollars
worth of a type of complex debt product due to a bug in its computer
models, a Financial Times investigation has discovered.

<end quote>

This article has also been slashdotted.

I'm sure this wouldn't have happened if only the experts here had been
consulted, because such things never happen to them, and free markets
fix all problems.

It just *happened* that this error was timed to contribute to the debt
bubble, and the discovery of the error time to contribute to the
collapse. Oh, well. People get hurt, often through their pension
funds, but, you know what? Software happens.

You're absolutely clueless.

1. Such software is made in house.
2. If the specification is wrong you're out of luck whatever your
super-duper formal verification process does.
3. Such software is an well guarded secret of the company, if others got to
know the algorithms and coefficients company is sol.
4. And it must be made and updated promptly to cope with changing situation
(and improved models implemented by competition)

So, as I wrote, go buy a clue and don't spout nonsense about things you know
nothing about.