(Not) Learning From Your Mistakes

“…these models do not fully capture what I believe has been, to date, only a peripheral addendum to… financial modelling – the innate human responses that result in swings between euphoria and fear that repeat themselves generation after generation with little evidence of a learning curve.” – Alan Greenspan

Maybe the manager should have read this book – When Genius Failed: The Rise and Fall of Long-Term Capital Management

Links here and here.