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Wall St criminal cabal Rule #1- Make everything so complicated and tangled that a team of MIT mathematicians would be baffled.
But isnt that the whole point of a sound free market that mathematicians should be baffled?
Mathematicians and modellers are part of the problem. If firms and investors wouldnt rely on mathematics so much to try to predict the market, they wouldnt have buy those MBS in the first place back in 2004-2007. But models told them to buy, so they bought.
The quants always fail because they cannot compute the "human factor". All this risk management scam is the biggest threat around. It corrupts minds and destroys entrepreneurship (which sould be about taking risks).
Real mathematicians like Kurt Gödel would be quick to point out that any model of aggregate market dynamics, especially in the modern communications enabled world, is impossible. No closed system can fully describe itself. That modeling has worked so well in the past only serves to highlight how few were exploiting the data for profit.
No dumbshit, models are just *idealizations* of the world. That is all they are. Should people just rely on the models? No, they should be used in conjunction with things like experience, new data, etc. Do people often ignore proper models about the world? Yes, to their peril. Just look at the P&L distribution and capital requirments on a bank with and without fraud. Is that the models fault there is a difference? NO! Can we add a fraud factor to the model? Yes.
The reason why we (mathematicians, statisticians, physicists and engineers) apply mathematics to the world is to sharpen the questions and think about the answers. This is what pushes the boundaries of human knowledge.
If we followed your thoughts and abilities on the subject, we would still be living under trees in animal skins and shit, out on the prairie, howling at the moon. Next time you see a silver bird like thing in the sky, remember it's not a sign the gods are angry, but just a result of science. It’s called an airplane.
Take you shity 5th grade education and mentality over to the flat earth society. You'll find much company there.
You obviously dont know shit about what you talk about. Try reading books, you might like it. You could start with Nassim Taleb's Black Swann.
Be prepared to be that deer in the headlights.
Only in America. Land of the free and the home of the brave!
I believe you meant, Land of the indebted and home of the slaves!
Goldman Sachs eats shit.
and likes it.
+++++ very interesting article Mr Fiderer
i watched the CNBC documentary on Goldman Sucks where we had their PR people holding to their hearts one of Sucks founding 'Corporate Principles' to always do what's best for their clients... the documentary came out 3 days after news broke they'd lost over 95% of the Libyan Sovereign Wealth Fund ....nothing but a bunch of (bankrupt) fraudsters expert only in fleecing and smarm (Sucks should have been dead and fuking buried/jailed in 2008)
"Sucks should have been dead and fuking buried/jailed in 2008"
+2008, the whole thing's rigged man. TBTF are the puppet masters. Oh, American Idol's on? I'll be right back....
"Goldman's business model is designed around the exploitation of secrecy."
Ain't that the truth. GS gets too much credit for intellect and not enough for just being crooked. I wouldn't be surprised if they had a direct pipeline to CIA/NSA intel with theri seeming lock on the Treas. Sec. position.
I think Goldman's business model is actually based on shoving your face down a clogged toilet at a gas station in Miami, FL during a massive heatwave. A clerical error will result in your death being labelled a suicide. But then again, who am I to judge God's work?
i like where you're going with this. For me I simply take Bernie Madoff and imagine him "writ large." It certainly is how he imagined himself--even today i have no doubt the toadies that still visit him in his prison cell are attracted to this vision. The irony that "you came to Bernie" should be lost on no one. No less than Franklin Delano Roosevelt himself coined the term "caveat emptor." Any questions?
Technically speaking access journalism does not apply to dumpster diving for fully functional laptops. Dumpsters are private property with the full rights of corporate personhood. It violates the fairness doctrine to dive in uninvited.
Actually, once the paper is in the trash it no longer belongs to the originator. It's what you do with the information in the dumpster that determines whether you have committed a crime.
The first rule of g-saks klub is you don't talk about g-saks klub.
The 2nd rule of g-saks klub is you don't talk about g-saks klub.
The last rule of g-saks klub is fuck clients, fuck society, fuck the world, kash the khekz.
Well written guest post but no big surprises here. Economic returns, by definition, are impossible in an efficient market. Therefore, the way to earn alpha is through asymmetric information.
It's no secret why so many fortunes have been made in real estate; that is, the assets are not fungible or interchangeable, and each participant to the trade may have information that the other does not.
Goldman creates an inefficient market through deception. It's not brain surgery to understand why there are no CFA charterholders in positions of power at that company. They worked too hard to earn the charter to lose it for the kind of crap that makes money at the giant blood-sucking squid.
The "who" is not important in terms of transparency in the markets, the "what" and "when" are.
That was an interesting post. Thanks.
But ya know what would be more fun? If Mr. Fiderer could give an analysis of what happened and how it may relate to New York's Martin Act. oooohhh la la
Thank you, David Fiderer, for the leg work you have done in bringing to light the secrets of Goldman Sachs. We don't revile them enough!
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