They Tried to Outsmart Wall Street - NYTimes.com
The newsy or useful point the article is trying to make kind of eludes me. From the front page snapshot, I thought there would be some statistic showing demand for quants has shot up with the crisis other than the discrete opinion of a quant professor who has a conflicted interest in selling his academic curriculum to prospective students. The reporter apparently just opened his quant rolodex and got a number of known quants say something that would make them look good and prop their books. Unlike what the title "They Tried to Outsmart Wall Street" would suggest, it does not try to hold any of those accountable.
How about BICs Sir, how about BICs, it actually would help...
I cry a river over this...
As I have described at length in other writings(See this or this ), and keep on saying, this crisis was a failure of the existing mathematical modeling framework at describing the real world dynamics of underlyings. Therefore the corresponding hedging and risk management strategies failed to represent reality and this fact becomes most obvious at times of crisis. One of the reasons for this development is the over-representation of former physicist at the highest levels of "quantdom" who have forced the adoption of a framework coming from another world. But "It ain't physics". It just ain't.
And I cry a river over this. I just cry a river over this....
Monday, March 9, 2009
LinkedIn: Answers: What are the best ways to enable grassroots stimulus, esp. with entrepreneurship?
LinkedIn: Answers: What are the best ways to enable grassroots stimulus, esp. with entrepreneurship?: "How about simply providing stimulative loans/ investments directly to all those educated professional in the financial services and media sectors that are being laid off in droves to start up anew?
Simple criteria: US Citizen or Permanent resident+college degree
Max amount 50K - No paperwork -Checks mailed by the IRS"
Simple criteria: US Citizen or Permanent resident+college degree
Max amount 50K - No paperwork -Checks mailed by the IRS"
Sunday, March 8, 2009
Saturday Night Live - Geithner Cold Open - Video - NBC.com
Dear Mr. Secretary Geithner,
Please , read this:
Please, please, please
Please , read this:
How to Value Illiquid Toxic Assets clogging up the banking system
Please, please, please
Friday, March 6, 2009
Fed Moves to Free Up Credit for Consumers - WSJ.com
Fed Moves to Free Up Credit for Consumers - WSJ.com
Why such a tortuous and costly scheme? Why not simply let the fed lend the money to consumer directly. In conjunction with the IRS, individual taxpayers account can be set up in the same manner as some of the the I-bonds where individual taxpayers can borrow directly from the treasury. Setting this up on an Internet architecture would make it relatively straightforward and stimulate the economy faster than any other mechanism.
Why such a tortuous and costly scheme? Why not simply let the fed lend the money to consumer directly. In conjunction with the IRS, individual taxpayers account can be set up in the same manner as some of the the I-bonds where individual taxpayers can borrow directly from the treasury. Setting this up on an Internet architecture would make it relatively straightforward and stimulate the economy faster than any other mechanism.
Op-Ed Columnist - The Big Dither - NYTimes.com
Op-Ed Columnist - The Big Dither - NYTimes.com
This article shows how even the "best and the brightest" seem not to see that the best approach to address this issue is as I describe in my article with the government becoming a market maker on TARP's illiquid asset. Nationalization in my view is not the answer, nor is some of the establishment of some of the private/ public funds. This structures merely add transactions cost and may only tangentially address the core issue
This article shows how even the "best and the brightest" seem not to see that the best approach to address this issue is as I describe in my article with the government becoming a market maker on TARP's illiquid asset. Nationalization in my view is not the answer, nor is some of the establishment of some of the private/ public funds. This structures merely add transactions cost and may only tangentially address the core issue
Steve Forbes Says Barack Obama's Economic Policy Repeats George W. Bush's Mistakes - WSJ.com
Steve Forbes Says Barack Obama's Economic Policy Repeats George W. Bush's Mistakes - WSJ.com
I strongly disagree with this argument against mark to market. As for dealing with market illiquidity, as I explain in my article on how to price illiquid TARP assets, when trading of assets economically vital is disrupted, government should set in to play a market maker's role, one of the additional positive results of such an approach being to enable effective market to market.
It is unfortunate that many it is shaping as republican vs. democrat thing.
I strongly disagree with this argument against mark to market. As for dealing with market illiquidity, as I explain in my article on how to price illiquid TARP assets, when trading of assets economically vital is disrupted, government should set in to play a market maker's role, one of the additional positive results of such an approach being to enable effective market to market.
It is unfortunate that many it is shaping as republican vs. democrat thing.
Monday, March 2, 2009
BICs Trivia
Introduction to BICs Exchange Systems
In this post, I just added a presentation that hopefully more clearly stresses the relevance and applicability of BICs as a sorely needed risk management tool
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