This is why the JPMorgan VaR model is the rule, not the exception: manual data entry, manual copy-and-paste, and formula errors. This is another important reason why you should pause whenever you hear that banks’ quantitative experts are smarter than Einstein, or that sophisticated risk management technology can protect banks from blowing up. At the end of the day, it’s all software. While all software breaks occasionally, Excel spreadsheets break all the time. But they don’t tell you when they break: they just give you the wrong number.
Category: Economics
Big Money Bets on a Housing Rebound
But, it turns out, sometimes when the system breaks down, there is money to be made.
Is Greece In Default Again ?
My feeling is that the answer is no. You can make the argument that this is a coercive distressed exchange, and that coercive distressed exchanges are one way of defaulting. But default is a fraught word, and I don’t think it should be used lightly. In this case, when the exchange is genuinely voluntary for all but the Greek banks, it seems weird to call it a default. Especially when the bonds are trading at their all-time highs.
Apple – After The Thrill Is Gone
As such, the thrill and excitement of extraordinary returns is simply not there anymore. And when the thrill of extraordinary returns is gone, then there is not a whole lot of reasons to hold onto the Apple. In which case, you are more prone to sell it than to hold on to it. In other words, you become trigger sell happy. I think that as more and more investors realize this, more and more will chose to sell.
Innovation Crisis or Financial Crisis?
In a forthcoming book, they argue that the collapse of advanced-country growth is not merely a result of the financial crisis; at its root, they argue, these countries’ weakness reflects secular stagnation in technology and innovation. As such, they are unlikely to see any sustained pickup in productivity growth without radical changes in innovation policy.
Abnormal Capitalist 