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Government parties, corporations, unions etc. are not sentient beings though they are composed of sentient beings. Sentience allows some variable capacity to predict future events however.. traders know more than most what happens when the human mind processes mostly random and how various delusions of control can grow.
Similar to the collateralized debt obligation bubble, we may have a global (optimistically mostly the US right now) "intellectual abstraction bubble" or exhaustion. Republican or Democrat in charge it does not matter, our collective intellect is plateauing.
That may make sense if you watch this interesting (I hope) talk. Or you have a different view.
funny how the bond mkt reporter for cnbc was asleep at the wheel prior to this crisis. did u ever hear him talk about CMO's, subprime....nope...he just raged at the Fed after the fact.
I left the cbot floor in 2001 to trade treasuries on the screen. Treasury futures have not traded on the floor of the cbot for over a decade...yet he is still there acting like he is in the middle of a trading frenzy and still blaming only the Fed.....
i thought it was an outstanding movie. i have been in the business since '87, i was totally blindsided by this. i paid cash for my house and no clue what was going on......that people behaved like this. just very impressed that these guys were able to figure it out and take advantage of it.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
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The banks obviously packaged and sold the loans, and actually originated some of the loans, but weren't most of the loans actually made by brokers like Countrywide and Century One?
"Countrywide - SEC charged CEO Angelo Mozilo and two other executives with deliberately misleading investors about significant credit risks taken in efforts to build and maintain the company's market share. Mozilo also charged with insider trading. (6/4/09)
Mozilo Settled Charges - Agreed to record $22.5 million penalty and permanent officer and director bar. (10/15/10)
New Century - SEC charged three executives with misleading investors as the lender's subprime mortgage business was collapsing. (12/7/09)
Executives Settled Charges - Paid more than $1.5 million and each agreed to five-year officer and director bars. (7/30/10) "
Trading: The one I'm creating in the present....Index Futures mini/micro, ZF
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My plan is to read the book The Big Short by Michael Lewis after I finish Douglas' new one so I can post if it talks about Countrywide and Century and other brokers but this sounds right to me.
Ron
...My calamity is My providence, outwardly it is fire and vengeance, but inwardly it is light and mercy...
The steed of this Valley is pain; and if there be no pain this journey will never end.
Buy Low And Sell High (read left to right or right to left....lol)
Christian Bale has been nominated for an Academy Award for his role in The Big Short. He plays the part of a Hedge Fund Manager who is amongst the first and few who realized the Subprime market was going to collapse.
I think his character is really interesting in the film.
Trading: The one I'm creating in the present....Index Futures mini/micro, ZF
Posts: 2,311 since Nov 2011
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Christian Bale's character, Michael Burry M.D., is quite the amazing person IMHO. He lift his residency position in the medical field to trade. He started a Hedge fund with family, friends and his own money. In the 3 year period grew it to $600 million wiki article did not say what it started out at. Then of course what he did that the film depicts so well namely taking a $1.3 billion to ~$2.6 billion for his clients (the ones that stuck around) of which $100 million profit was his. He was early with his trade and almost had to have lower abdominal surgery from the street of it all paying monstrous monthly premiums and dealing with some of his clients leaving. But he was right as we know.
Certainly remarkable. I really like the way Bale portrays him in the movie. He has these quirks like whispering to himself at times.
I also think the most damning moment in the movie is when Steve Carell's character asks the S&P rating agency's lady 'you're not downgrading sub-prime bonds, but have you ever refused to rate any?' and eventually she cracks and goes 'if we don't give them the ratings they'll go to Moody's, right down the block'.
