I just came across an article in New York Magazine about Michael Osinski, a software programmer that helped design the software that creates securities out of home mortgages. This process of packaging, buying and selling mortgage-backed securities is what many people cite as the root of the current economic crisis affecting our world. Michael Osinski was at the forefront of this industry in the 80′s, and he designed the software that allowed greedy traders to bring down the financial system in this country.
My Manhattan Project is a truly interesting look into the world of financial software development from a first-person point of view. Osinski gives entertaining and shocking insights into the world of Wall Street during the boom years that fueled ever increasing greed in traders. He gives accounts of receiving outrageous bonuses and his attempt to justify them in his mind. His frank and completely honest look into this industry is one of the best I’ve read, and it helps explain the current financial mess we are in.
Illustration by Kagan McLeaod
Osinski also gives a great insight into the true aim of software. He says that the underlying purpose behind any software is to create an “alternate reality”. The goal is to give the user the greatest possible power with the least amount of input necessary. Software is designed to disguise the complexity of a task and allow the user to think as little as possible. In this regard, Osinski’s mortgage-packaging software was incredibly effective.
If you have a few minutes, give this article a read. You will gain new insights into the financial crisis and learn about the power of well written software. Osinski’s ego does come into play in this article, but it’s not hard to see why he feels partly responsible for the mess on Wall Street.
