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Ha Ha China Destroys The World!

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Saw this on Cracked....

http://www.wired.com/techbiz/it/magazine/17-03/wp_quant?currentPage=1

Heh David Li thought up a formula http://en.wikipedia.org/wiki/Gaussian_copula#Gaussian_copula

Which big banks applied it to investment... for a decade..... after which the Western economies of the world implode...

Conveniently in 2008 he moved back to Beijing. Those commies are smarter than you realise. Which led to threads like this:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=168437&pid=3099317&st=40entry3099317

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Well, it's going to plan in the West:-

The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.

Vladimir Lenin

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Saw this on Cracked....

http://www.wired.com/techbiz/it/magazine/17-03/wp_quant?currentPage=1

Heh David Li thought up a formula http://en.wikipedia.org/wiki/Gaussian_copula#Gaussian_copula

Which big banks applied it to investment... for a decade..... after which the Western economies of the world implode...

Conveniently in 2008 he moved back to Beijing. Those commies are smarter than you realise. Which led to threads like this:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=168437&pid=3099317&st=40entry3099317

...formulae do not work on human sheeple...and liars... :rolleyes:

The reason that ratings agencies and investors felt so safe with the triple-A tranches was that they believed there was no way hundreds of homeowners would all default on their loans at the same time. One person might lose his job, another might fall ill. But those are individual calamities that don't affect the mortgage pool much as a whole: Everybody else is still making their payments on time.

....fools ...smart with numbers... but...maths does not take into account greed and lies.... :rolleyes:

Edited by South Lorne

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...formulae do not work on human sheeple...and liars... :rolleyes:

....fools ...smart with numbers... but...maths does not take into account greed and lies.... :rolleyes:

The Key was the liar loaners etc were all given 3-4yr 'teaser' low rates of interest and lied to about how much they would have to pay on their less secure mortgage rates in the future which wiped them all out immediately as soon as the teaser rate period finished.

This gave the bent rating scum in Manhattan ratings offices & their banks time to get rid of AAA rated stock (with minimal bad loans as none of the 'conned' liar loaners were defaulting during that short time period.)

It was a carefully 'crafted' setup by Financial Elites - which they deny knowing what was taking place (just as 'they' ignored millions of obvious, unscrutinised, liar loan applications!)

Edited by erranta

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The Key was the liar loaners etc were all given 3-4yr 'teaser' low rates of interest and lied to about how much they would have to pay on their less secure mortgage rates in the future which wiped them all out immediately as soon as the teaser rate period finished.

This gave the bent rating scum in Manhattan ratings offices & their banks time to get rid of AAA rated stock (with minimal bad loans as none of the 'conned' liar loaners were defaulting during that short time period.)

It was a carefully 'crafted' setup by Financial Elites - which they deny knowing what was taking place (just as 'they' ignored millions of obvious, unscrutinised, liar loan applications!)

A bit more than ignored them - they strucutred their new loan application processes to enable them - using third party broker networks to process the applicants - getting them to fabricate the lies for them at arms length - this eweas coverered in the tv programme on the UK market. Also the appraiser netwrok were badgered by the loan arrangement teams to price up valuations to meet the sums that are were being borrowed, if the appraiser would not bow to the pressure they were replaced with a number hitter (often new employees into the sector) who would simply value at whater the loan arranger wanted.

Everything was turned on its head to satisfy the fiat money pumpers to meet their wishes to issue ever more debt to keep the ponzi scheme growing and the commissions flowing in.

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Well, it's going to plan in the West:-

The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.

Vladimir Lenin

should have put legislation on the list too.

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Interesting article- thanks for posting.

I think this was my favourite line:

Li's approach made no allowance for unpredictability:
:lol:

So- a risk modelling formula that made no allowance for unpredictability??? :o

We need a facepalm emoticon- a big one!

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I've never heard of this formula, but it is an open secret the chinese are following a 50 year plan to 1) build huge reserves of US debt and forex and 2) lure US industry to China with the objective of one day bankrupting the US, destroy faith in US credit and bring down the dollar hegemony, and become dominant in Asia. They will lose money but this is far far preferable to open warfare which would also lose money.

Edited by Britney's Piers

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Interesting article- thanks for posting.

I think this was my favourite line:

:lol:

So- a risk modelling formula that made no allowance for unpredictability??? :o

We need a facepalm emoticon- a big one!

I think any system that you model needs to make assumptions of some sort.

He forgot that it is these assumptions that are the Achilles heel of the model.

Interestingly this happens a lot in economics. Someone finds a strong correlation between something. However if you use A to change B so you can manipulate the economy, then the correlation will break down.

Same happened with mortgages in the US. They spotted that the default rates were low. So they decided to make money, cranking up the volume of mortgages. And Lo, default rates soared. Mortgages default at rate A, only if you carefully check applications. To increase the volume of mortgages, you have to stop doing proper checks, something that wasn't catered for in the model, so the default rate soared as they changed mortgage volume to B.

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From Jurassic Park:

(Perhaps David Li, actuary, should take note of the following. In Jurassic Park Jeff Goldblum played Chaotician Ian Malcolm):

JurassicPark125.jpeg

MALCOLM

Don't you see the danger, John, inherent in what you're

doing here? Genetic power is the most awesome force

ever seen on this planet. But you wield it like a kid

who's found his dad's gun.

GENNARO

If I may.... It is hardly appropriate

to start hurling

Excuse me, excuse me I'll tell you.

MALCOLM (cont'd)

The problem with scientific power you've used is it

didn't require any discipline to attain it. You read

what others had done and you took the next step. You

didn't earn the knowledge yourselves, so you don't take

the responsibility for it. You stood on the shoulders

of geniuses to accomplish something as fast as you

could, and before you knew what you had, you patented

it, packages it, slapped in on a plastic lunch box, and

now you want to sell it.

HAMMOND

You don't give us our due credit. Our scientists have

done things no one could ever do before.

MALCOLM

Your scientists were so preoccupied with whether or not

they could that they didn't stop to think if they

should. Science can create pesticides, but it can't

tell us not to use them. Science can make a nuclear

reactor, but it can't tell us not to build it!

HAMMOND

But this is nature! Why not give an extinct species a

second chance?! I mean, Condors. Condors are on the

verge of extinction - - if I'd created a flock of them

on the island, you wouldn't be saying any of this!

(or)

have anything to say at all!

MALCOLM

Hold on - - this is no species that was obliterated by

deforestation or the building of a dam. Dinosaurs had

their shot. Nature selected them for extinction.

HAMMOND

I don't understand this Luddite attitude, especially

from a scientist. How could we stand in the light of

discovery and not act?

MALCOLM

What's so great about discovery? It's a violent,

penetrative act that scars what it explores. What you

call discovery I call the rape of the natural world!

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  • 333 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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