Archive for June, 2014

This time is different

What happened?
Having survived the collapse, well educated people were on the hunt for new revenues.
Astrophysicists, mathematicians, and other geeks started drawing profits from market volatility with the help of machines crunching their elaborate quant models.
Icelandic fisherman buying assets abroad with borrowed foreign money.
Irish banksters inflating their national real estate markets with destructive tax competition and borrowed money from abroad.
Greeks cheating their way into the EU in order to borrow like solvent citizens and nordic tax payers.
Investors, mainly the Landesbanks from Germany, hurled in to take the opposite side of the bet that none of these borrowers will ever default.
And the quants who produced such toxic crap ran to mom and asked her for insurance on assets they did not even own!
Glorious days, those were.

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