March 28, 2009
Bose Pacia, New York
"We are seeing things that were 25 standard deviations moves, several days in a row". This was the comment that David Viniar, CFO of Goldman Sachs offered as his explanation for the crisis. In other words, bad luck– an awful lot of it– has brought the world to the edge of a recession.. How accurate is this statement, and what made Viniar, one of the central players in the financial system believe this to be true? How does one understand the crisis from the viewpoint of uncertainty in financial markets? And what does this mean for the future?