Review Review

If Wall Street and Math interest you, don't miss Peter Woit's review of The Quants. Some parts that I like:

Patterson’s story emphasizes heavily the relationship to gambling. He writes extensively about Ed Thorp, who developed the theory of card-counting, did well with this at casinos, then moved on to the hedge fund business. Just about everyone profiled in Patterson’s book is described as having read and been inspired by Thorp’s 1962 book on card-counting (Beat the Dealer). ...

...The book has little to say about a more significant failure that involved a different group of quants, those responsible for the bad mathematical models used to justify the mortage securitization business. From what I can tell, there the story is that if there’s a lot of money to be made creating a financial instrument carrying large risks obscured by complexity, it’s not hard to find people willing to help you sell it by creating bad mathematical models of its behavior.


I would like to see Wolfgang's review, but maybe he is too close to speak about this stuff.

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