the financial crisis happened because unwise investment managers sold unviable inverstment bundles to people. these investment managers used financial models which they themselves did not understand completely to justify the risky products they promoted. the models were greek to most of us and so we relied heavily on the expert advice of our 'so-called' investment experts. we chose to walk over our common sense and bank upon some set of numbers that were gibberish to us but were of great insight to some other 'inteligent' men. the models get passed on from year to year and person to person and survive all types of analysis and questions simply on the premise that they were 'okay' last year too.
there is a strong need to simplify things. infact things start to get complex when our greed takes us over. we want to make that quick buck, or should i say 'big' buck in 'little' time. it is then that we even start exploring opportunities that dont really exist in the real world but are simply born on our computer screens!
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