At this very moment, throughout this great land of ours, ordinary people dwelling far away from the chaotic nonsense known as Wall Street are probably wondering how so much money could be wasted by so few people — people who, in fact, live in another country. And when the very same people appear to be rewarded for putting all of us in deep schmutz, the folks who pay all the invoices in the country have a right to ask why. And they do. How such self-described masters of the CDS universe went from Latin lovers to limp losers in one fell swoop is truly amazing.
For God’s sake, relax! Everyone is so uptight right now that we can’t even think. We will only get out of this mess by thinking, not by reacting prematurely with adolescent measures and childish pronouncements.
It’s probably fair to say that, at this very moment, many of you are looking for an easy resolution, something that would enable you to move on, to accept the unacceptable. You are wondering how the devil we got here, how we could possibly “lose” so much so quickly. The obvious answer to this rhetorical question is that “we” have lost nothing, for one can only lose what one truly has in the first place.
My recent post on the sorry state of financial engineering seems to have touched a raw nerve in the FE community.
The last six months have brought American finance to the edge of the abyss. Mortals who, not so long ago, had seemingly achieved demiurge deal-making status are now experiencing their Götterdammerung. A single question now poses and imposes itself: what will the next six months reveal about our financial understanding? As always, only two possibilities […]
A dry summer of discontent is now upon us, and not a day goes by without some sad or lurid tale of pathos and angst on Wall Street filling the pages of newspapers. If the truth be told, we have yet to even come to grips with the depth of our current predicament, let alone […]