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View Diary: The Evening Blues - 4-17-13 (61 comments)

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  •  evening priceman... (7+ / 0-)

    i would like to see an analysis that demonstrates how influential reinhart-rogoff's phoney-baloney theory has been, and how many countries have been negatively affected by the austerity that has been foisted on them by these two lackeys of the 1%.  it would be nice if the analysis could detail the scope and scale of the misery that these two have caused.

    i am wondering if the fact that bush/cheney committed war crimes is now officially conventional wisdom, even in the wishy washy milque-toast media like the newshour, if that won't pressure obama.  i guess we'll see if it comes up on the sunday shows.  if the mainstream media create a drumbeat, it might actually make a difference.

    take it easy priceman, perhaps the shock and dismay caused by what happened in boston, juxtaposed in the news against more terrible drone attacks, bombings and the admission that america tortures will cause the public mind to make some appropriate connections.

    i'm part of the 99% - america's largest minority

    by joe shikspack on Wed Apr 17, 2013 at 05:56:39 PM PDT

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    •  Thanks, Joe (5+ / 0-)

      Just too early in the week for that and totally unexpected though in this kind of world created I guess we should expect it.

      Yes that is the analysis we need to see though we know the suicides in Greece and elsewhere in the eurozone are part of it.

      You gotta wonder the real despair those in Guantanamo feel that no one is talking about this or caring about what is happening to them.

      Thanks man. I'll be OK and keep that in mind. That and everything else. Nothing but bad news these days, but we just have to take heed that people will make these connections.

      I don't negotiate grand bargains with deficit terrorists!

      by priceman on Wed Apr 17, 2013 at 06:05:58 PM PDT

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    •  The Black-Scholes model (6+ / 0-)

      was considered to be some kind of gift from a higher power. It was worshipped back in the 90s when I first heard of it as we were deploying new services and tools for brokers and traders.  We had books on it, needing to understand it well enough to test the software.   There was a reverence around it.

      They won a Nobel prize in Economics for it.

      And guess what?  It was flawed.  Black-Scholes didn't get along with Black Swan.

      Black-Scholes: The maths formula linked to the financial crash

      It's not every day that someone writes down an equation that ends up changing the world. But it does happen sometimes, and the world doesn't always change for the better. It has been argued that one formula known as Black-Scholes, along with its descendants, helped to blow up the financial world.
      [...]
      "The equation is based on the idea that big movements are actually very, very rare. The problem is that real markets have these big changes much more often that this model predicts," says Stewart. "And the other problem is that everyone's following the same mathematical principles, so they're all going to get the same answer."
      [...]
      Ten years after the Long-Term Capital Management bail-out, Lehman Brothers collapsed. And the debate over Black-Scholes and LTCM is now a broader debate over the role of mathematical equations in finance.
      [...]
      Black-Scholes changed the culture of Wall Street, from a place where people traded based on common sense, experience and intuition, to a place where the computer said yes or no.


      "Justice is a commodity"

      by joanneleon on Wed Apr 17, 2013 at 06:59:59 PM PDT

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