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The Cost of 'Reform' | 21 comments (21 topical, editorial, 0 hidden)
Re: Hehe! (4.00 / 2)
So mark-to-model is bad because models may bear no relationship to reality, and mark-to-market is bad because it leads to forced sales?

Maybe the problem lies elsewhere, in the rigid rule-based risk framework.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes

by Carrie (migeru at eurotrib dot com) on Wed Apr 9th, 2008 at 04:39:50 PM EST
[ Parent ]
Well yes (4.00 / 2)
the problem is in forgetting that economic risk is, utlimately, a qualitative problem, not a quantitative one.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Wed Apr 9th, 2008 at 04:58:23 PM EST
[ Parent ]

The Cost of 'Reform' | 21 comments (21 topical, 0 editorial, 0 hidden)
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