GFC and Climate Change

A friend sent the following article to me in relation to one of the root causes for the global financial crisis. And seriously its worth a read if you want to get yet another insight into our current plight.

However the last two paragraphs really caught my eye:

In the world of finance, too many quants see only the numbers before them and forget about the concrete reality the figures are supposed to represent. They think they can model just a few years' worth of data and come up with probabilities for things that may happen only once every 10,000 years. Then people invest on the basis of those probabilities, without stopping to wonder whether the numbers make any sense at all.

As Li himself said of his own model: "The most dangerous part is when people believe everything coming out of it."

Now in the first sentence remove the words "in the world of finance" and replace with "in the world of climate change science" and re-read.

Nuff said.