In his book, "The Quants," Wall Street Journal columnist Scott Patterson looks at how a new breed of math wizards contributed to the meltdown of our financial system during the years of 2007-2009. It seems these highly intellectual analysts believed that the rules of physics could be applied as easily to financial products using complex algorithms. Early on these Quants got their start trying to devise systems to win at...you guessed it! Blackjack. The book has good lessons for future investing. As Warren Buffet is quoted "Beware of Geeks Bearing Formulas."
Read more article: The Minds Behind the Meltdown from the Wall Street Journal.