Lee Smolin, a physicist at the Perimeter Institute for Theoretical Physics in Waterloo, Ontario, said, "What is amazing to me as I learn about this is how flimsy was the theoretical basis of the claims that derivatives and other complex financial instruments reduced risk, when their use in fact brought on instabilities."
Quants say that they should not be blamed for the actions of traders. They say they have been in the forefront of pointing out the shortcomings OF modern economics.
"I regard quants to be the good guys," said Eric R. Weinstein, a mathematical physicist who runs the Natron Group, a hedge fund in Manhattan. "We did try to warn people," he said. "This is a crisis caused by business decisions. This isn't the result of pointy-headed guys from fancy schools who didn't understand volatility or correlation."
Whether it is true or not hasn't changed my view of the field of finance and economics, which I do not consider to be a "science". It is more of an after-the-fact quantitative analysis with vague predictive power. That probably is an ignorant view of it, but I haven't heard, read, or seen enough evidence to the contrary.