The fundamental mathematical error was failure to understand the immutability of the ‘One Planet Equation’ in a resource constrained world, coupled with a reductionist and deterministic view of systems. see tab on header.
The maths of the credit crunch
As the downturn takes hold, BBC Radio 4’s More or Less programme looks at the maths behind the credit crunch.
Since 2007, presenter and economist Tim Harford has been exploring and explaining the numbers which have contributed to – and have characterised – the global economic downturn. …………
………… A fundamental mathematical error
Paul Wilmott says an additional cause of the credit crunch is that people simply got their sums wrong. …
Complete article at http://news.bbc.co.uk/1/hi/business/7815994.stm