Actions of greedy and naive people caused the crisis. People built and implemented the computerized decision systems that made "bad" loans resulting in high loan default rates. Decision automation facilitated the fast, simplistic decisions and provided an aura of rationality for the "new" instant Web-based lending. Too many people believed the "hype" that automated lending decision making would be both beneficial and effective. Also, the apparent inevitability of competitors automating decisions blinded managers to the risks of adopting cleverly designed and poorly understood software systems. Let's review the facts about what happened.
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Posted March 30, 2014 9:37 AM
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