Are Mathematical Models the Cause for Financial Crisis in the Global Economy?

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1. I really enjoyed your video. The link below is connected to investopedia one of the products that came out of the last crash was Glass Steagall Act. These are the things that kept us safe all those years... but when it got gutted in 2001 it only took them 8 years to bring the whole system down!
   
   http://www.investopedia.com/articles/03/071603.asp
2. There is a financial crisis because of the mishandling of money by corrupted people, the monetary system is all together a failed system, its unequally distributed and tons go unaccounted for.  Since it has too much value and been ingrained in our society instead of trying to reform it, those who have control of it will rather see a other depression  or recession happen.
3. The level of financial mathematics taught in American Universities is worse than appalling. Do you know that American mathematicians can't divide the "time zones" Yesterday; Today; and Tomorrow into their time zones using the necessary 4 Cartesian co-ordinates and put t(zero) in its correct position. I can't believe this; but they have been doing incorrectly for the last 44 years
4. Your correct; but I was nearly correct and he is Chinese.
5. I was in a pub in Donegal Town talking to my niece's husband (he's a maths professor) and for small talk we were discussing "the random walk" his and mine; "the Central Limit Theorem" and "the Gaussian Normal Distribution Curve" which is derived from the CLT. I claimed that the Gaussian curve is nowhere as accurate as Merton and Scholes claim; and in reality only less than 30%, from practical experience. Friedman validated the B-S formula and a massive flood of derivatives was unleashed.
6. The cupola man was D. Li.
7. Never considered "normal accidents" a part the financial crisis before. Easy to see how efficiency and the race to the bottom (profit) affect safety in othe other industries. Be efficient at cutting waste until there is an accident. Competitors narrow profit margins and organisational momentum remove safer long term options. 
8. The most important things in a model are those it doesn't contain. 
9. Excellent explanation of securitization... You can start at 15.00...
10. Unless your math model is a perfect mimic of the complex reality, I'll always contest your assumptions
11. A very good start; it had to be the Accountants to blame as they must have OK.ed the accounts and it's time one of these big accounting firms was blamed and dissolved (pour encourager les autres) as they used to say. Mr Lo is completely wrong by blaming the wrong people Is Mr Lo not the Cupola Man? Does he know the difference between a Gaussian Normal Distribution Curve and a Probability Curve? This is a serious question and not a joke. Does he know that he is betting all we have in a casino?
12. Awesome demonstration
13. What about the GLB act or the repeal of the Glass-Steagall as it is more commonly known or Ben Bernanke with his insane Great Moderation Theory which implied that banks didn't need reserves since recessions were banned. I used think that they were not very bright at MIT. since I saw them welcoming Bob Merton as a veritable god in some video. You are on the right tracts with securitisation and as you say Basel is a bad joke
14. Mega-banks rule the World
15. Based on the title alone, my answer would be MISUSE of models played a big role. Looking forward to the video.
16. Note at 36:00 "Thought experiment."
17. Note at 28:00 min
18. Excellent Demonstration on many levels. Well done Dr. Lo
19. love the salad comment. Timing is everything!
20. That was a very clear explanation. Thanks for posting this lecture.