Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
The fact that you are virtually guaranteed to suffer on the order of 100 defaults out of 2 thousand loans just means you have to charge 5 % extra on all the loans.

It means you're virtually guaranteed no upside and all downside. Logarithmic utility can be really nasty on the downside.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

by Migeru (migeru at eurotrib dot com) on Tue Mar 13th, 2012 at 10:30:42 AM EST
[ Parent ]

Others have rated this comment as follows:

Display:

Top Diaries

The Making of A Rebellion

by Oui - Jan 10
60 comments

China Releases Trump's Deck of Cards

by Oui - Jan 21
6 comments

Italian government collapse

by IdiotSavant - Jan 15
20 comments

A New Dawn In America

by Oui - Jan 20
35 comments

Forever Corruption and A Pardon

by Oui - Jan 20
4 comments

Dutch Government Collapse

by Oui - Jan 16
8 comments

Occasional Series