Andrew Lo Defends the Quants

Not a big surprise here "It wasn't the models"

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

Andrew W. Lo, director of MIT’s Laboratory for Financial Engineering, explores and renounces the claim that mathematical models are to blame for the current financial crisis.

The jist is it's behavioral economics that are at fault, and not the Math.

And yet... Come On.... There is plenty of blame to go around. We can blame Faith in Homo-economis, AND the Quants, And The banks, and the Borrowers, And the Boomers, And the Chinese PEG, And Over Consumption, And a Credit Bubble, And a few things I can't think of right now. There are some significant problems with the math, One of which is that the point of a proper model, is to get rid of the behavior. This is why we build a Mathematical model, to get rid of the behavior, bias, and emotion.

BTW... NOT Teresa Lo's brother.