Manias, Panics and Crashes

Manias, Panics and Crashes

Introduction In this study this paper will be focusing on the financial investors and small savers, as compared to the big financial players like institutional investors, hedge funds and investment banks like the insurance companies and pension funds and if in this area history or psychology plays a role within the modern financial market, all the articles are focusing on this subject. These articles are also demonstrating the struggle of quants that are known as quantitative investment managers.

Models Designed By Individuals Holding Degrees in Engineering and Physics, Were and Are Used Within the Modern Financial Markets

In these articles it shows the struggle of the quants with the market because most of them acquired degrees in engineering and physics where some of them were observed to be using different technologies for managing the money or investments made by individuals. Because the quants were not capable of managing the market through their own studies so they depended on these technologies but they never wanted to accept failure of any kind. They have excuses for blaming the system or can blame on the ever changing market or the investors taking out money frequently that was leading in mismanaging the market. Because of the fact that these quants are supposed to be doing quantitative finance that is linked by holding a vision related to the mathematical elegance that depends on the disorganized activities of the human, they utilized old skills that were being used long time back, they blamed the errors on the financial crisis, eventually these would not prove successful because depending on the changing market the way of dealing changes. These quants are also responsible for analyzing the stock market. Although it was observed that some of the quants were performing well manually compared to the ...