Justin du Coeur (jducoeur) wrote,
Justin du Coeur

The End of Wall Street's Boom

[Happy (now belated) birthday to osewalrus!]

Thanks to mindways for the pointer to this fascinating article about the mortgage meltdown and how it happened. It's pretty long, but well worth reading, being both interesting and informative.

It's kind of based on the classic Wall Street question, "If you're so smart, why aren't you rich?" -- it tells the story of a few traders who saw the disaster coming long in advance, and *did* get pretty rich off of it. Along the way, it describes their gradually wakening horror as they figured out how horrifyingly broken the market was, and the step-by-step description of them discovering the structure of the house of cards is actually one of the clearer outlines of that structure that I've read.

And tying back to the birthday greeting up top, it's kind of an interesting variation of cassandrafreude. These guys reportedly tried fairly hard to wake everybody up to the looming disaster. And while they made a pile off of it (by short-selling the firms that they could tell were doomed), one gets the impression that they were pretty horrified by being proven so terribly correct: even as they were vindicated and made their money, they could see the burning towers of their own city around them...
Tags: economy

  • Art of Conversation on "Google+: Circles vs. Identity"

    For those who are interested: the advent of Google+ has inspired me to fire up The Art of Conversation again. I encourage y'all to come and chat...

  • Art of Conv: Wave Postmortem

    Lots of people gave me the heads-up about Google Wave while I was at Pennsic, but I wasn't going to deal with it then. But now that I'm beginning to…

  • More going on over at artofconv

    For those who are interested in what I have to say: I've recently been ramping up my professional blog, The Art of Conversation. It had been sliding…

  • Post a new comment


    Anonymous comments are disabled in this journal

    default userpic

    Your reply will be screened

    Your IP address will be recorded