Feynman on Suits vs. Geeks
Megan McArdle quotes Richard Feynman’s analysis of the Challenger disaster. I was drawn to this paragraph in particular:
why do we find such an enormous disparity between the management estimate and the judgment of the engineers? It would appear that, for whatever purpose, be it for internal or external consumption, the management of NASA exaggerates the reliability of its product, to the point of fantasy.
I have been arguing that this is what took place with mortgage securitization. The suits kept saying that everything was fine, even though the geeks thought otherwise.
The suits are the ones who champion the Paulson plan and say that taxpayers will make a profit.
Have a nice day.