Wednesday, May 21, 2008

Lessons from Moody’s Mistake

Author: raj
Category: Finance

- In our 1st statistics lesson we’ve been taught:
Garbage in, garbage out. It doesn’t matter how often you perform the MC-simulations….

- In our 1st economics lesson we’ve been taught:
It’s all about assumptions. Once you’ve made the wrong ones you’re doomed….

- In our 1st business lesson we’ve been taught:
It’s all about incentives, stupid. Make’em big enough and they’ll do whatever you need the to do….

If it weren’t real money it would have been fun to laugh at Moody’s doing all three rookie mistakes….

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