Once, Mr. Andrew Sheng, Former Chief Adviser to China Banking Regulatory Comission, stated two points about global financial crisis:
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1. The raise of financial industry emerged after Cold War. Instead of pursuing high-tech after Cold War, physicists and mathematicians entered finance world and created ‘powerful weapon’ with their mathematical and problem solving skills.
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2. He raised a rhetorical question, “Why financial engineer (or quant) paid four times or maybe hundred times compared to real engineer? Real engineer build real things like bridges, while financial engineer build dreams. And when the dreams turned to be nightmares, all suffered”
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I think what Mr. Sheng said is really interesting.
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I disagree with several points he made.
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Why?
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This is not because financial engineer, or quants, or physicist and mathematician (see Bro? Physics and Mathematics is really cool yeah? Wkwk) do their things.
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I argue :
1. This roots in our philosophical idea. In what philosophy we believed in?
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If we took ‘being greedy is good’ – even when those philosophical idea had been written in mathematical form, had won the Nobel prize- to our deepest mind and heart, it will affect our thinking and action to real world.
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2. I believe that financial engineering / quantitative finance / quantitative analysis is a TOOLS provided to understand society, especially in finance.
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Here, I attached a screenshot about financial engineering in Shari’ah perspective. The author argued that financial engineering is kind of stratagem. Yes, there are some forbidden stratagems. Indeed.
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The pro/con in financial engineering = pro/con in Artificial Intelligence.
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Some say it’s a good tools for humanity, some say it’s a life-threatening thing to humanity

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