Re: Article 4

From: Horseless
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Date: 25 Feb 2008
Time: 13:06:52

Comments

Some things just can not be fixed. The market timing scandal you mentioned may be an example. The only people who might know are the ones doing it, and without any visibility to risk management there is no way to control it or even know. There is no mystical ability to know what you don't see. The only flag may be that profits for one group are larger than expected, but challenging business units for being profitable does not seem to be useful. The sub-prime mess is another issue that might assume disproportionate powers to control. The ones who knew something was wrong were serious economists like Martin Feldstein and Bob Schiller, and not those muppets speaking for the IB's. A lot of the analyst's entire work lives had not even spanned a housing cycle probably still being in high school in the early 1990s and were completely clueless as to what might happen. This is another topic but too many put up a fascade of economic knowledge when all they really do is skim the Journal, tweak it a little, and speak with conviction.

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