You have no idea what you are talking about. The street never used any complex method to value these instruments, only a small group of investors & hedge fund bothered to do so. The inputs are relatively simple and are basic economic, personal income and housing data to calculate return and probabilities. You obviously have never used an IB Excel model that is modified with some programming. As for the ratings agencies, they had kids out of college working on these and building their documentation, who were not anywhere near capable of C++. They used excel. Any real analysis of these instruments simply points to the fact that they are unsustainable, and nowhere on this level did anyone do any analysis behind the actual demand conundrum for housing with an extensive and complex model. Those that did, were shorting, instead of giving out high grades or peddling the crap to institutions.
well thats funny because couple posts ago you insisted Excel feels, containing models, are changing hand. On ignore.
lol, you are so damn wrong, no matter how much you hate my attitude. The models were way too complex to be done in Excel. You simply have no clue at all. Nobody used kids or new grads to model this stuff nor market those. You are not just lacking any knowledge in this arena you even make up lies to support your idiotic point. Guys, I strongly recommend you put this guy on ignore as well. Some may dislike my way of articulating my opinions but at least I know what I talk about.
Little boy, get a clue. Moody's and S&P hires kids out of college who do the grunt work. IBs are quite similar, if you ever worked in the field, you would know. If you paid attention, I made it sort of clear that they take orders & direction from the upper level, but they do the grunt work. Complex C++ programming, you're making me laugh. You're too stupid to even realize that most of the "complex" image on the Street is just an illusion. I think the only ones who think you know what you are talking about are the trolls of this site. You might be able to pull some wool over the new & naive members here, but it is obvious to me how full of sh*t you really are. Why don't you tell some more stories about how you modeled CDOs for your personal self. Or make up stories about niche super profitable exotics that are apparently only available for trade to super special big shots like you. You're a joke and since your whole rhetotic can be summed up by a picture of you hugging & kissing the Goldman Sachs logo, I will proceed with putting you back on ignore.
If you think the quant models use Excel for _anything_ I....I don't even know what to say.....................
http://www.youtube.com/watch?v=qBb-J4LI0co&feature=related Misterno, this is one. From this link look to (right side) of this video. You can see many more hearing videos.