The "logic" of Wall Street is to push all the risk out to the tail of
some estimated distribution and then to find some chump on whom to lay
off that risk. That's all there is to it.
One famous chump was the Treasurer of Orange County, California, where
many true believers live. With few exceptions, they regard themselves
as ruthlessly logical. Just like Harvard's Endowment Fund, the county
made money hand over *** on its investments--until it didn't. Even
Harvard can be a chump.
In the most recent debacle, the ultimate chump in many cases was AIG,
which was actually running a scam by offering guarantees it could not
Tim Geithner, another Harvard guy, just talked Congress' ear off as to
why AIG and its counterparties didn't deserve to be the chump.
Congress wasn't impressed, and neither was I. In the end Secretary
"Tax Evader" Geithner felt that it was ordinary taxpayers and not his
buddies from Harvard who should be the chumps.
That's it. That's all you need to know, Everything else is smoke,
mirrors, Nobel prizes, and huge bonus checks.
If you're a dumb computer jock with an overinflated ego, you're bought
in, too, because it's a great scam if you can get a piece of the