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The Boston Globe



The hazards of optimism

Dated, overly positive risk models helped fuel the financial crisis

A few months ago, a friend of mine who made a fortune in hedge funds sent me something he wrote entitled, “What went wrong and how to fix it.’’ It was about the economy — 4,880 words — full of terms my brain could hardly wrap itself around.

“Andy,” I asked him. “I’m not sure I can understand this. Can you translate into English?”

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