In the November / December 07 issue of MIT's "Technology Review" magazine there is a good article which covers the topic of the August 07 Market Rout which contributed to negative performances in stat/quant funds.
Great Article Psytrade,
I didnt understand the complexities of the CDO products, but this article gives a better picture of where all of this comes from .
What a derrivative product "cdo's of cdo's of cdo's !!!"
No wonder the market is doing what it is doing , it looks to me based on the article that we are experiencing large amounts of de-leveraging...
I found the original poster's article on this site
His student days were at Wharton. His academic travels have been notable.
Usually he juxtaposes an idea of his against a traditional precept.
I am familiar with the faculty/student modus at Tech. Roughly speaking, they do the grind there and it keeps problems alive and well for considerable periods of time. Rubberstamping is not a good characterization; it probably would be better described as keeping the home fires glowing. More nudgey than fudgey.
