Disclaimer: I wrote some of those algorithms. I used to believe that as well: the algorithms are gobbledygook, but once I got into it and really understood, I realized it's use of the algorithms that was problematic. The first time I priced mortgage-backed "bonds", I was honestly aghast as to how it was possible to perpetrate such a structure.

After a lot of testing, I realized that the models were fine, but the politics behind choosing the parameters were to blame (hint: the ones that gave the best bonuses).

Just my 2c. Stallman is smart, and correctly called a lot of the stuff that is happening now, but I don't think he is right there.