Wednesday, April 21, 2010

This is an interesting article (interesting article in this case being used to mean "an article I agree with")

I think I've made this analogy before. All the dodgy securitizations that Goldman is being given shit for right now are like drugs - if there were no buyers, there would be no sellers.

The writer of this article makes the same analogy. Anyone going LONG a synthetic CDO by definition assumes that there is a counterparty going SHORT. It's like betting on a football game - you know that the odds are calculated based on the number of people taking the opposite bet.

Sorry, but this post is not funny. I will return with some funny material soon as I know that funny content generates approximately 80% of the 2 hits a day I get.

Mo out.

No comments:

Post a Comment