The WSJ notes that the zig-zagging stock market can in large part be blamed on "quants" - quantitative hedge funds, which rely on computer models to determine which stocks to bet on.
No. Quants generate noise only rather than randomness which can run.
This week's stock-market spasms left some traders questioning the validity of their models, after their computer-generated strategies led to a wave of losses.
Their models can only realize a positive expectation if they're based on perfect hedge.
"Events that models only predicted would happen once in 10,000 years happened every day for three days," says one rueful analyst.
False, nonsensical, self-serving, idiocy from someone who doesn't know what a computer model does.
Post columnist Steven Pearlstein translates the implications of the crisis for the regular consumer: pension and property values will fall, while debts will get more expensive. "Order of magnitude: something approximating the recent tech and telecom bust, only a bit worse," he writes.
Ridiculous and perfectly unchallengeable since nothing in the statement can be pinned down. It's like saying, "it's there, right between up and down".
The NYT fronts a look at the dilemma facing Fed chief Ben Bernanke as he ponders bailing out the traders
No. Gross and false generalization fed out to push buttons. A form of yellow dog journalism.
whose taste for high-risk mortgages triggered the current crisis.
Traders trading in mortgages?
The WSJ calls for Bernanke to stay calm and allow the market to run its course: "The biggest favor he could do for himself and the markets is not to give in to the temptation to do favors for Wall Street or anyone else." Meanwhile, the government refused to loosen constraints on Fannie Mae and Freddie Mac; the companies had argued that they should be allowed to buy more mortgage-related investments to help struggling lenders and borrowers. The Post notes that the tiff allowed the companies - often criticized by regulators - to "cast themselves as willing to ride to the rescue while their nemeses in the government stood in the way".
I already addressed this issue in previous posts, especially in #9694. |
