Was poor numeracy to blame for the credit crunch?

  • 1 Replies

0 Members and 1 Guest are viewing this topic.


Offline thedoc

  • Forum Admin
  • Administrator
  • Sr. Member
  • *****
  • 513
    • 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 »


Offline alancalverd

  • Global Moderator
  • Neilep Level Member
  • *****
  • 4912
  • 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.   
helping to stem the tide of ignorance