It's rather ironic that modern finance uses 'security' to name their instruments when any notion of 'secure' applied to these is problematic. Okay, risk management developed, in part, to handle the uncertainties. Yet, finance depends upon trust. We expect those to whom we entrust our money to show fiduciary dutifulness, for one.
That, for so long, things ran amok has many contributing factors and factions. Amongst these is thinking that finance can be engineered; can that notion ever be anything but twisted?
02/13/2009 -- Securities are toxic, in many cases, despite regulatory oversight.
01/18/2009 - We even need to look at why we need finance.