"Hey market what are you up to?"
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I was thinking something more like the
1800 VICTIM 2 song:
(This ad is very funny but it was also very effective in NYC ... we really are like this I guess)
@futurebird @eeentropyyy @cykonot I love how their shirts say VictimA, clearly this was the second go at it
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@futurebird @eeentropyyy @cykonot I love how their shirts say VictimA, clearly this was the second go at it
@neckspike @eeentropyyy @cykonot
OMG I didn't catch that!
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"Hey market what are you up to?"
"I have this nice AAA bond very safe can't go wrong."
"Wow THREE As?"
"Yes."
"So uh... what's in it?"
"Well... you know. Bundles."
"Bundles of what?"
"Bundles of bundles."
"Ok what is in those bundles?"
"Loans."
"That's nice. What kind of loans?"
"..."
"Well?"
"I'm lending cash to teenagers over the internet to buy NFTs... LISTEN I know it sounds risky... but ALL the loans can't fail!"@futurebird every generation learns that variances don't cancel
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@futurebird every generation learns that variances don't cancel
@PizzaDemon@mastodon.online @futurebird@sauropods.win what does that mean exactly?
is it like "if E(x) is negative then n*E(x) is even more negative"?
but if your E(x) is zero or positive, the variance doesnt really matter no? -
"Hey market what are you up to?"
"I have this nice AAA bond very safe can't go wrong."
"Wow THREE As?"
"Yes."
"So uh... what's in it?"
"Well... you know. Bundles."
"Bundles of what?"
"Bundles of bundles."
"Ok what is in those bundles?"
"Loans."
"That's nice. What kind of loans?"
"..."
"Well?"
"I'm lending cash to teenagers over the internet to buy NFTs... LISTEN I know it sounds risky... but ALL the loans can't fail!"@futurebird Isn't that what basically happened during the 2008 financial crisis? Millions of bad sub-prime mortgage loans re-packaged as collateralized debt obligations for basically the sole purpose of bumping up the debt by one or more letter grades?
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@futurebird Isn't that what basically happened during the 2008 financial crisis? Millions of bad sub-prime mortgage loans re-packaged as collateralized debt obligations for basically the sole purpose of bumping up the debt by one or more letter grades?
@Intaglio_Dragon
yes. and they are doing it again -
"Hey market what are you up to?"
"I have this nice AAA bond very safe can't go wrong."
"Wow THREE As?"
"Yes."
"So uh... what's in it?"
"Well... you know. Bundles."
"Bundles of what?"
"Bundles of bundles."
"Ok what is in those bundles?"
"Loans."
"That's nice. What kind of loans?"
"..."
"Well?"
"I'm lending cash to teenagers over the internet to buy NFTs... LISTEN I know it sounds risky... but ALL the loans can't fail!"@futurebird Oh, have we reverted to 2008 and the system of bundling and rebundling and securitizing bundles of bad loans that brought down so many firms and banks and cost many people their homes?
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@futurebird Oh, have we reverted to 2008 and the system of bundling and rebundling and securitizing bundles of bad loans that brought down so many firms and banks and cost many people their homes?
YES
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@PizzaDemon@mastodon.online @futurebird@sauropods.win what does that mean exactly?
is it like "if E(x) is negative then n*E(x) is even more negative"?
but if your E(x) is zero or positive, the variance doesnt really matter no?@m @futurebird
https://statproofbook.github.io/P/var-lincomb.htmlIf both RVs are drawn from a similar population, they are likely to covary together. My long ago recollection from undergrad.
So two subprime mortgages are probably not independent risks. It's likely the same factors that influence one home owners ability to make payments also affects others in the same tranche. I.e. the macroeconomic conditions.
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@futurebird every generation learns that variances don't cancel
@PizzaDemon @futurebird
I think their bad assumption was "housing prices always go up!" They assumed that even if people foreclosed the banks would make money selling the houses. -
@PizzaDemon @futurebird
I think their bad assumption was "housing prices always go up!" They assumed that even if people foreclosed the banks would make money selling the houses.I view the source of the nonsense as the idea that just because you can do math to show two sets of debts are “equivalent” that means it’s wise to treat them like they really are identical. But, in the end, behind every loan contract there are people and there is no math to make people equivalent.
