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	<title>Comments on: Margin calls</title>
	<atom:link href="http://blogs.reuters.com/emanuelderman/2011/11/03/margin-calls/feed/" rel="self" type="application/rss+xml" />
	<link>http://blogs.reuters.com/emanuelderman/2011/11/03/margin-calls/</link>
	<description>Models.Behaving.Badly</description>
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		<title>By: stat_arb</title>
		<link>http://blogs.reuters.com/emanuelderman/2011/11/03/margin-calls/#comment-201</link>
		<dc:creator>stat_arb</dc:creator>
		<pubDate>Sat, 05 Nov 2011 09:20:08 +0000</pubDate>
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		<description>In Margin Call. Before the final boss&#039; monologue, a couple of rationalisations of financiers are put forward:

1) We deal at arm&#039;s length with rational counterparties.

2) Normal people relish the credit that Wall Street provides, but at the same time blame financiers when &quot;the world gets real fair, real quick.&quot;

3) What&#039;s right? Right for whom?

Then the boss (Tulda?) says more or less:

4) We can&#039;t control or even influence events; we just react.

5) The same ratio of fat cats to starving dogs has persisted throughout history.


I might have missed a few here.


Do you think real financiers really hold those views? And what&#039;s your reaction to them.






A couple other interesting aspects of the movie:

* the clueless and the ruthless were of greatest service to the firm (or those who are both)

* contrast between old and young (particularly 23-year-old &quot;Seth&quot; represents the most dogmatic pro-Wall-Street attitude)

* oblique references to &quot;real work&quot; are all that&#039;s ever needed (&quot;digging holes&quot;, &quot;building bridges&quot;) ... we and they know money is what beckoned them and heels them

* everybody&#039;s smart but nobody knows what it all Means (cf. PPE morphs to PNE)</description>
		<content:encoded><![CDATA[<p>In Margin Call. Before the final boss&#8217; monologue, a couple of rationalisations of financiers are put forward:</p>
<p>1) We deal at arm&#8217;s length with rational counterparties.</p>
<p>2) Normal people relish the credit that Wall Street provides, but at the same time blame financiers when &#8220;the world gets real fair, real quick.&#8221;</p>
<p>3) What&#8217;s right? Right for whom?</p>
<p>Then the boss (Tulda?) says more or less:</p>
<p>4) We can&#8217;t control or even influence events; we just react.</p>
<p>5) The same ratio of fat cats to starving dogs has persisted throughout history.</p>
<p>I might have missed a few here.</p>
<p>Do you think real financiers really hold those views? And what&#8217;s your reaction to them.</p>
<p>A couple other interesting aspects of the movie:</p>
<p>* the clueless and the ruthless were of greatest service to the firm (or those who are both)</p>
<p>* contrast between old and young (particularly 23-year-old &#8220;Seth&#8221; represents the most dogmatic pro-Wall-Street attitude)</p>
<p>* oblique references to &#8220;real work&#8221; are all that&#8217;s ever needed (&#8220;digging holes&#8221;, &#8220;building bridges&#8221;) &#8230; we and they know money is what beckoned them and heels them</p>
<p>* everybody&#8217;s smart but nobody knows what it all Means (cf. PPE morphs to PNE)</p>
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