well said! most companies' long-term earnings projections are are a mirage too. and consequently their valuations no one knows what will happen tomorrow. what you can do, though, is sell your forecasts to others it think seth macfarlane's 'cat staff meeting' (can be found on youtube) says it all . .. you forecast and forecast and forecast . .. and then . .. boom! .. .
Someone pointed this out in an editorial somewhere and I agree... It's really quite unconstructive and, generally, wrong to blame a certain constituency or, worse yet, a person for the crisis. The thinking public should really try to do their utmost to resist the temptation to over-simplify things, because no real insight will be had from that. The problem at the core of the crisis, IMHO, is the mis-alignment of incentives, which affected everyone, not just bankers, mkt participants or mtge applicants. If we blame everything on Li or Black or Greenspan or whoever, we're missing the point and are destined to repeat this again. The fact that the silly media are doing it is understandable, as it's their job to give the masses what they want, i.e. a scapegoat. However, Wired is supposed to be a bit better than that,. so it's a disappointment.
i agree, i was a little disappointed by the tone too .. . one could 've expected wired to place things into perspective a little better
Good Article. I have taken advance classes in finance. They have so many equations, so complex, you can't understand it.
It's time to blame a math scientist and forget about the big geo-political power plays that were the actual cause of the crisis that happened and the one to come soon. It does not matter whether you use a single value for correlation or a complex function as long as you are operating at the limit of consumer debt, nation debt, in periods of geo-political chaos, energy chaos, enviromental chaos, unprecedented levels of worldwide political and white-collar corruption and infinite materialism. Yes, let's blame this guy named Li. It's a short name easy to remember. Let's also blame Newton for his gravity equation that did not predict perihelion advance and as a result we get deicing periods. Idiots...
In another thread some guy claims he has a Phd and asserts that you need a Phd to even think about trading and that a bunch of guys daytrading off a screen are never going to make it.. how about a big round of LOLs.....