Hot Air comments:
It’s not really the theory that people love — it’s the wealth and power they can grab by exploiting the theory.
Reading an article Black-Scholes: The maths formula linked to the financial crash on the BBC website today, the oft-mentioned link between prosperity and global temperature came to mind (from William Herschel’s 1801 observation that when there were fewer spots, wheat prices were higher to, at a stretch, links with the Dow Jones here).
The article describes how the development of an equation and models that provided the financial world with a way out to calculate value of future options and all kinds of other financial assets led to over-reliance on such methods. Replace the terminology in places with that of climate science and you’ll get what I mean:
View original post 492 more words