John C. Dvorak on Spreadsheets
January 13th, 2009
Courtesy of PCMag:
This is what caused the mortgage crisis: Spreadsheets instead of people were making decisions on loans. Soon these loans were wrapped up into neat financial packages all based on spreadsheet accounting. Brokers gave these packages high, triple-A financial ratings because the spreadsheet told them to. All spreadsheets, except the most mundane, are flawed in one way or another. You guess what the growth rate might be. You guess at the future cost of goods. You play what-if until you get what you want. There’s a lot of guessing games played with spreadsheets. This is a flaw.
Read the rest of the article here. You can follow all things John at ChannelDvorak.com.
::SS::
