Date: Sun, 12 Feb 2012 12:47:29 -0800 (GMT-08:00) From: Dan Asimov<dasimov@earthlink.net> Subject: Re: [math-fun] Ian Stewart: The mathematical equation ...

I worked in high finance '87-'91 as a mathematician/analyst/programmer.

...<snipped>...

So it's hard for me to believe that Black-Scholes is responsible for the recent recession/depression.

My guess is that the repeal of Glass-Steagall in 1999 introduced market instability that played a large role.

One buzz word is CDS, credit default swaps. And their relatives, bundled.