Today on CNBC American Squawk box I heard one of the most straight talking individuals I have listened to in a long while. The panel was Steve Forbes, and a woman called Janet Tavakoli, and they were talking about Quant funds and their models.
Janet’s comment regarding quant model’s was, and I quote:
Model Masturbation
I cracked up howling…
Otherwise she made some very good comments. This is definitely one individual that I will be looking up to see what else she is thinking about.
Monday, Aug. 13, 2007
by Christian
Many, including myself are wondering who is responsible for this mess. Many point at Greenspan, but I think it is not so black and white.
One problem that we have is that people don’t understand the mathematics and dynamics of mortgages. I even get the feeling that mortgage lenders are pretty clueless. In particular I would like to quote the following from Housing Bubble.
“One was a waitress who made decent money at a high end restaurant, but couldn’t prove it because so much of her pay was in cash tips. Another was a young lawyer, making nearly $200,000 in the city but who didn’t have the money saved for the down payment on a $800,000 Manhattan condo.”
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Monday, Aug. 13, 2007
by Christian
