Ultimately, emerging market growth is highly dependent on growth in advanced economies, as we saw recently after China recorded a sharp slowdown in exports, due to softer growth in the US and Europe. Emerging market central banks have also had to contend with strong capital inflows over the past few years owing to a search for yield, and resulting in appreciating currencies.
And yes, there is also a risk of financial players taking unfair advantage of our inclination toward modelling financial risks. At the same time we must be careful not to fully reject theories and extrapolations about finance. Model-based hypotheses and data-based research are still valuable and they are certainly better than an erratic change to regulation or supervision.