Trend Following
Sponsor
The <a href="http://www.brokemovie.com">web site</a> for the film.
Broke-- The New American Dream
- Thread starter marketsurfer
- Start date
One would also think that LTCM would have taught Scholes something...
http://www.dogshit.eu/myron-scholes-kills-again/
Trend Following
Sponsor
Well stated. One woman interviewed for film, while facing foreclosure, unable to pay bills, had a house filled with goodies and a tricked out SUV that must have been worth $40k plus. She was an under 30 social worker. Am I saying she was a bad person? I can't speak to that, but clearly her material ambition can't simply be left at the feet of Wall Street.
The age of prosperity is far from over. They key to prosperity is to get rich. The American dream is alive and well.
Trend Following
Sponsor
I am not the sole person on this film! There were designers for that poster who get the credit. FilmLook is a question for my editor, will check.
I always remember going to a financial advisor with my girlfriend. This guy was straight out of college wih no training, completely clueless. Had no idea what an option was. He tried to sell us an annuity, I am like dude I am 26 years old, are you insane. Anyway they scammed us for a " financial plan" like $800 bucks and my girlfriend to this day is funding an IRA with them. My point is extract all the dipshit brokers, sales reps, trading coaches, fund managers, etc and you start to get an idea that real talent in trading or any profession is rare; really rare. Taleb calls this survivor bias along with its ugly brother the false expert.
Let's face it, people are generally idiots. That's why it should be up to the lending institutions not to let them borrow money over their abilities.
Hey, wait a minute! They don't let you anymore!
Sure, the borrowers are responsible too, but have I mentioned they are idiots?
P.S.: An analogy would be kids driving. Sure 10 year old kids would drive if we let them, but they are immature/irresponsible, so we don't. Same with people borrowing money...Not to mention the average borrower might not be too good at math and trusts the "expert".
Evidently it taught him two lessons.
First, once you get over that pesky moral hazard nonsense, you can take audacious flyers conveniently supported by cool-sounding junk science in a glorious effort to amass a personal fortune at the expense of others.
Second, you can do it again.
Quote from Pekelo:
Let's face it, people are generally idiots. That's why it should be up to the lending institutions not to let them borrow money over their abilities.
Hey, wait a minute! They don't let you anymore!
Sure, the borrowers are responsible too, but have I mentioned they are idiots?
P.S.: An analogy would be kids driving. Sure 10 year old kids would drive if we let them, but they are immature/irresponsible, so we don't. Same with people borrowing money...Not to mention the average borrower might not be too good at math and trusts the "expert".
what about the equal or greater number of idiots ( your word ) who made a fortune on their homes? Just the random souls you got caught at the top are suffering. no one ever talks about the winners in times like these, and i assure you, they are the majority.
surf
who are these others?
the others are also sophisticated, wealthy people and institutions willing to take risk and fully aware of same.
do you really think mom and pop invest in hedge funds?
You truly have no understanding how things really work.
surf