The formula that killed Wall Street
Version of Record online: 8 FEB 2012
Copyright © 2009 Condé Nast. All rights reserved. Originally published in Wired. Reprinted by permission.
Volume 9, Issue 1, pages 16–20, February 2012
How to Cite
Salmon, F. (2012), The formula that killed Wall Street. Significance, 9: 16–20. doi: 10.1111/j.1740-9713.2012.00538.x
- Issue online: 8 FEB 2012
- Version of Record online: 8 FEB 2012
Wall Street in the mid-1980s turned to the quants – brainy financial engineers – to invent new ways to boost profits. They and their managers, though laziness and greed, built a huge financial bubble on foundations that they did not understand. It was a recipe for disaster. The journalist Felix Salmon won the American Statistical Association's Excellence in Statistical Reporting Award for 2010, We reprint his article, first published as the cover story of Wired magazine, because it brilliantly conveys complex statistical concepts to non-specialists.