I will enjoy this video in a while as sound is not enabled, in the laptop, I am using currently using.

The suprime crisis occurred mainly because the industry continues to employ models that simply do not reflect reality and / or specific circumstances. Predicting reality is, of course a quite, difficult task but this does not mean that we should be using models that are built on a number of simplified assumptions. Using such models (which in some cases are more than 30 years old) to make decisions at "big" scale produced the recent unpleasant situation putting, at the same time, at stake the reputation of the credit rating agencies.