Possible Insight

Archive for November 2008

Required Reading on Financial Crisis

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Remember Liar’s Poker by Michael Lewis about 80s Wall Street excess?  Well, he has a terrific article on some guys who saw the subprime meltdown coming and bet heavily on it.  It’s great narrative and a reminder that whenever someone’s model departs substantially from reality, there is an arbitrage opportunity.  Hey, maybe we should rename this blog “Reality Arbitrage”.

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Written by Kevin

November 12, 2008 at 6:54 pm

Posted in Markets, Models

Tagged with ,