I really don’t know that this is…
The collapse of Long-Term Capital Management in the 1998.
Plot summary: Geeks finally use their brains and math to beat the market, but it blows up in the face, nearly taking a good portion of the banking system with it.
Taxpayers save the day.
Subtitle: Beware of geeks bearing models.
2008 Financial Crisis: Beware of Geeks Bearing Models II
Plot Pitch: Long-Term Capital Management was like the Death Star. This movie needs to be bigger! The latest trilogy of Star Wars, the evil empire harnessed the power of a star. We will do something like that.
Plot Summary: Ignoring the lessons of Long-Term Capital Management, the masses again put their trust in the nerds. After all, they have discovered with their brains and math ways to hide the risk of making home loans to cats and dogs.
Let’s bury the whole economy. And, yet again, taxpayers to the rescue.
2020 Covid-19 Pandemic: The Perfect Storm
The pitch: It’s 12-years later. The masses have mysteriously forgotten the damage caused by the previous generation of nerds who could not, in fact, make dogs and cats pay on their loans, and again, put their trust in them. After all, Stitch Fix’s algorithm now dresses them to look almost cool. If math can make make nerds look cool, then of course it can predict pandemics.
Meanwhile, the media has become so bad at words and math that what they report is quite often something from an alternate universe.
And, the third element of the perfect storm: reasoning has been weakened through a generation of PC culture, which evolved into cancel culture, where the only acceptable approach to disagreement is inspired by Orwell.
Mix those three elements and watch the damage caused be far greater than any one element could have done. It’ll hit the hospitals, the economy and basic human rights all at once!
Cue the heroes, yes taxpayers.
Is there a chance for a third sequel in another 9-10 years? Stay tuned. The writers are still working on the ending for this one.
It’s worth mentioning that a third sequel would be timed just about right to commemorate the 100th anniversary of the prequel to all this: The Great Depression: The Nerds Still Aren’t Sure What Caused This, So Quit Trusting Them!