Wednesday, 28 January 2009

Model behaviour

John Kay is on fire again with another fantastic column.

His latest is a paean to individual judgement and financial models, as well as some snappy analysis.

"In the new economy bubble of the 1990s, equities roared ahead while property languished. But during 2003-2008, the availability of underpriced credit, followed by its abrupt withdrawal, affected property and shares in similar ways. Anyone in the financial world knew these things: but computers, churning through reams of data, did not."

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