Comments on: The Gaussian copula function tattoo http://blogs.reuters.com/felix-salmon/2011/05/13/the-gaussian-copula-function-tattoo/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: EllieK http://blogs.reuters.com/felix-salmon/2011/05/13/the-gaussian-copula-function-tattoo/comment-page-1/#comment-26599 Mon, 16 May 2011 19:39:04 +0000 http://blogs.reuters.com/felix-salmon/?p=8232#comment-26599 Thank you, Uncle_Billy! Excellent link and suggestion.

Greg was very thorough. Doctor_Rx grumped about it at the very end. I think Greg might know what he is talking about though. (Doctor_Rx is sadly misinformed about the nature of blog comments. But that was back in 2009. People may have been more civil back then….)

]]>
By: Uncle_Billy http://blogs.reuters.com/felix-salmon/2011/05/13/the-gaussian-copula-function-tattoo/comment-page-1/#comment-26545 Sun, 15 May 2011 07:41:21 +0000 http://blogs.reuters.com/felix-salmon/?p=8232#comment-26545 For further reading, you can skip the blog post and just read Greg’s comments:

http://www.nakedcapitalism.com/2009/07/g uest-post-review-of-ferdinand-pecoras.ht ml

]]>
By: Uncle_Billy http://blogs.reuters.com/felix-salmon/2011/05/13/the-gaussian-copula-function-tattoo/comment-page-1/#comment-26544 Sun, 15 May 2011 07:39:10 +0000 http://blogs.reuters.com/felix-salmon/?p=8232#comment-26544 “Back in 1933, when Ferdinand Pecora uncovered huge scandals on Wall Street, they were easy for all Americans to understand, and easy to protect against.”

I hope you don’t seriously believe that Pecora was both a brave defender of the public interest and a member of Tammany Hall, and “uncovered huge scandals on Wall Street.” Oh my, JP Morgan didn’t pay any income tax for two years!! These were show trials. Pecora was either bought and paid for and hand-picked for the show trials, or just doing some friends o’ his a few favors, which also set him up for a nice cushy judgeship down the line. He and hims family were from Nicosia, in Sicily, a notorious mafia town. You think they didn’t have mob connections in New York? If you do, I don’t know what to say. You know that Leon Panetta’s family hails from the hottest Ndraghetta region of Italy? You know how Ndraghettonians started to make their money in the States in the early days? Running some kind of scam in Mining towns. You know what his dad did before settling down in Northern California? Worked in “mining.” You think it’s a freaking accident that he’s running the CIA and becoming secretary of defense. What was his previous military experience? An army attorney in Vietnam? Salmon, you have to be playing the innocent. Would you lose your job if you didn’t? See what happens. You’re fairly intelligent, not a bad writer, easy on the eyes when you’re not all dolled up in neon clothing… why do you want to perpetuate this baloney? You’ve bought into the whole “we’re making a better world” manure? Wake up… these are fascist dirtbags and you’re doing their dirty work.

“The financial crisis was a major event which was caused by Wall Street’s shortsighted greed — a greed which is epitomized in the way that the copula function became ubiquitous even though risk managers and even Li himself knew full well that it was extremely limited in how it should be used.”

No, the ultimate cause was not the greed, it was the people who know how to use greed. Conmen.

]]>
By: FelixSalmon http://blogs.reuters.com/felix-salmon/2011/05/13/the-gaussian-copula-function-tattoo/comment-page-1/#comment-26541 Sun, 15 May 2011 00:49:00 +0000 http://blogs.reuters.com/felix-salmon/?p=8232#comment-26541 I third Greycap about Lanchester. But I’m puzzled where he gets the idea that anybody at all thinks the Wired piece to be better than Lanchester’s stuff.

]]>
By: Christofurio http://blogs.reuters.com/felix-salmon/2011/05/13/the-gaussian-copula-function-tattoo/comment-page-1/#comment-26533 Sat, 14 May 2011 00:22:38 +0000 http://blogs.reuters.com/felix-salmon/?p=8232#comment-26533 I second Greycap about Lanchaster. He writes quite well. I enjoyed his novel about the history of Hong Kong: Fragrant Harbour.

]]>
By: Greycap http://blogs.reuters.com/felix-salmon/2011/05/13/the-gaussian-copula-function-tattoo/comment-page-1/#comment-26530 Fri, 13 May 2011 22:04:24 +0000 http://blogs.reuters.com/felix-salmon/?p=8232#comment-26530 That Wired piece is not as good as you think. The best math-free account of what has gone wrong in banking was written by the novelist John Lanchester. It is called “I.O.U.: Why Everyone Owes Everyone and No One Can Pay.” The series of pieces he wrote for the London Review of Books is also excellent and covers similar ground.

He’s not a bad novelist either; I recommend “The Debt to Pleasure.”

]]>
By: thispaceforsale http://blogs.reuters.com/felix-salmon/2011/05/13/the-gaussian-copula-function-tattoo/comment-page-1/#comment-26527 Fri, 13 May 2011 19:36:21 +0000 http://blogs.reuters.com/felix-salmon/?p=8232#comment-26527 Isn’t all greed shortsighted? In the longterm greed must end in resource exhaustion, sort of parasite as murder-suicide.
Still, it seems simpler to me if Elms has a single tat stating “opacity is power”

]]>
By: EricVincent http://blogs.reuters.com/felix-salmon/2011/05/13/the-gaussian-copula-function-tattoo/comment-page-1/#comment-26525 Fri, 13 May 2011 17:54:48 +0000 http://blogs.reuters.com/felix-salmon/?p=8232#comment-26525 Felix, I second havkitty. Vuvuzelas on the Wired article, and this follow-up. Your efforts to educate us morts does not go unnoticed. Cheers.

]]>
By: hsvkitty http://blogs.reuters.com/felix-salmon/2011/05/13/the-gaussian-copula-function-tattoo/comment-page-1/#comment-26524 Fri, 13 May 2011 17:47:07 +0000 http://blogs.reuters.com/felix-salmon/?p=8232#comment-26524 “Back in 1933, when Ferdinand Pecora uncovered huge scandals on Wall Street, they were easy for all Americans to understand, and easy to protect against. This time around, Wall Street’s activities are incomprehensible not only to the lay person but even to senior bankers …”

“… which means that it’s extremely hard to make a strong case in front of a jury that what they did was criminal.”

Too bloody true, bit it isn’t impossible. If the SEC had been educating their staff and garnering evidence rather then protecting banks and collaborating with them, there would have been many prosecutions.

Your wired article was very well done and probably did more to educate than most.

]]>
By: Greycap http://blogs.reuters.com/felix-salmon/2011/05/13/the-gaussian-copula-function-tattoo/comment-page-1/#comment-26521 Fri, 13 May 2011 14:20:04 +0000 http://blogs.reuters.com/felix-salmon/?p=8232#comment-26521 “it took me a long time to find the formula written down in a manner which looked like an old-fashioned formula, and which I could annotate graphically”

Well, you can’t have looked very hard. It’s equation 12 in Li’s classic paper!

]]>