Goodreads helps you keep track of books you want to read.

Start by marking “Models.Behaving.Badly.: Why Confusing Illusion with Reality Can Lead to Disaster, on Wall Street and in Life” as Want to Read:

Enlarge cover

# Models.Behaving.Badly.: Why Confusing Illusion with Reality Can Lead to Disaster, on Wall Street and in Life

Emanuel Derman was a quantitative analyst (Quant) at Goldman Sachs, one of the financial engineers whose mathematical models usurped traders' intuition on Wall Street. Thereliance traders put on such quantitative analysiswas catastrophic for the economy, setting off the series of financialcrises that began to erupt in 2007 with the mortgage crisis and from which we're stil
...more

Hardcover, 240 pages

Published
October 25th 2011
by Free Press
(first published October 13th 2011)

## Friend Reviews

To see what your friends thought of this book,
please sign up.

## Reader Q&A

To ask other readers questions about
Models.Behaving.Badly.,
please sign up.

Be the first to ask a question about Models.Behaving.Badly.

## Community Reviews

(showing
1-30
of
477)

Chapter 1 - The most annoying chapter. I think he started with grandiose ideas for the book, and he takes us on a meandering tale of his own personal background and how he was the smartest kid on the block. I almost dropped the book at this point, but no, I am the type who has to finish every book I start. And actually, I am glad I did.

Chapter 2 ...more

Derman points out that financial models use the mathematics and style of physics; however, they are fundamentally different from the models used in the physical sciences. Financial models, even at their best, provide a gross oversimplification of reality.

In his "Financial Model ...more

Moving be ...more

This book is a perfect addition to N.N. Taleb's "Black Swan" and a perfect rejoinder to these silly bankers who can't model their way out of a darkened room and who are constantly proclaiming that what they do is good for themselves and (LOL) even ...more

Sep 15, 2012
Jonathan
added it

This was a good read and reminder never to fall in love with our models of reality; to not confuse the moon with the finger that points to it.

There are no discussion topics on this book yet.
Be the first to start one »