Software allowed bankers to divorce actual assets (homes and property) from the circumstances and risks associated with them. Loans were issued to people for houses, but the banks buying and packaging them together into securities had no idea where those homes were located, who owned them, and what the underlying risk of the loan was. Software based on past data set prices for these loans and assets using inaccurate economic assumptions (for example: housing always goes up, because it has the past 20 years). Many in Wall Street bragged how computers had basically eliminated risk from
...more
Dont blame it on the technogy but instesd on tfhe bankerd who used a nd dedmanded development of the tech again fthe author is bsrking up the wrong tree.
