thqta might be fun actually. But yeah, it's not something you would do
in your spare time.

On Wed, Oct 1, 2008 at 4:15 PM, Maureen <[EMAIL PROTECTED]> wrote:
> It is very difficult, if not impossible, to put a value on risk in a
> pool of potentials that have no historical values to use for actuarial
> calculations.
>
> The math regarding derivatives is very complex, but the real problem
> is that the data to perform the analysis doesn't exist, i.e. it is
> impossible to project the results of an event that has never happened
> before.  We have, at most, about six months of failure data, and that
> is tainted by the government infusion to Bear Sterns, and recent bank
> failures.
>
> I wrote some really elegant algorithms for the Resolution Trust to
> track assets and debt during the Savings and Loan debacle, but that
> was only mortgage based failures, skewed mostly by fraud.  It would be
> a real challenge to tackle tracking and projection for derivatives.
> But someone would have to pay me REAL BIG BUCKS, and give me about 200
> data entry clerks to enter the consolidated data.
>
>
> On Wed, Oct 1, 2008 at 2:51 PM, Dana <[EMAIL PROTECTED]> wrote:
>> interesting that you should ask that... most people say that it's
>> because nobody understands how to value derivatives.
>>
>> On Wed, Oct 1, 2008 at 12:23 PM, Sam <[EMAIL PROTECTED]> wrote:
>>> What caused the $1 trillion credit derivatives default?
>>> Bad mortgages.
>>> So what was your point?
>>>
>>>
>>> On Wed, Oct 1, 2008 at 10:21 AM, Maureen <[EMAIL PROTECTED]> wrote:
>>>> Credit derivatives are in the 50 Trillion range, not bad mortgages.
>
> 

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