Naked Science Forum

On the Lighter Side => That CAN'T be true! => Topic started by: thedoc on 27/06/2013 16:58:13

Title: Was poor numeracy to blame for the credit crunch?
Post by: thedoc on 27/06/2013 16:58:13

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 (http://www.thenakedscientists.com/HTML/news/news/1000233/)

  

Title: Re: Was poor numeracy to blame for the credit crunch?
Post by: alancalverd 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.