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Bloody brilliant discussion Manuel, cheers. Do you know the story of the Chinese quant who fled back to China after the Gaussian copula he developed for JPM Morgan went bust, because it was based on assumptions the housing prices never go down? The only problem I have with blaming everything on faulty math, is that it neglects all the shadow bankers who benefit from crashing the economy, twice when bailouts arrive, in a timely fashion. Note my most recent missive: https://medium.com/@daneke/dispossession-by-derivatives-how-securities-became-less-secure-6dc7bb84bc34

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Greg Daneke, Emeritus Prof.
Greg Daneke, Emeritus Prof.

Written by Greg Daneke, Emeritus Prof.

Top Economics Writer, Gov. service, corp consulting, & faculty posts (e.g., Mich., Stanford, British Columbia). Piles of scholarly pubs & occasional diatribes.

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