The Naked Scientists

The Naked Scientists Forum

Author Topic: Was poor numeracy to blame for the credit crunch?  (Read 1859 times)

Offline thedoc

  • Forum Admin
  • Administrator
  • Sr. Member
  • *****
  • Posts: 511
  • Thanked: 12 times
    • View Profile
Did homeowners with a poor command of maths cause the global financial crisis, US researchers are wondering...?

Read the whole story on our website by clicking here

  
« Last Edit: 27/06/2013 16:58:13 by _system »


 

Online alancalverd

  • Global Moderator
  • Neilep Level Member
  • *****
  • Posts: 4704
  • Thanked: 153 times
  • life is too short to drink instant coffee
    • View Profile
Re: Was poor numeracy to blame for the credit crunch?
« Reply #1 on: 06/07/2013 20:39:56 »
The apparent correlation between mortgage default and mathematical incompetence may be false: the true correlation is surely that the less intelligent or at least less mathematically competent, are more likely to have insecure incomes and more easily gulled into taking on longterm liabilities in general.

The global financial crisis was caused by highly mathematically competent people speculating with other people's money on the growth of a market that was driven entirely by speculation itself.   
 

The Naked Scientists Forum

Re: Was poor numeracy to blame for the credit crunch?
« Reply #1 on: 06/07/2013 20:39:56 »

 

SMF 2.0.10 | SMF © 2015, Simple Machines
SMFAds for Free Forums