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(The Year 2012 In Review)
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|User Info||The Scam Of VaR "Risk Models"; entered at 2012-05-18 10:55:41|
Registered: 2007-07-27 Phoenix, AZ
I believe the reason Buffet called them "weapons of mass destruction" was because counter parties to the same "transaction" use the same VAR model but have the lattitude to change the assumptions of a variable to suit their own outcome, thereby exacerbating divergence rather than "netting out".|
After he trapped himself in $35 billion? of these transactions, he no longer talks about this, now preferring to extoll the virtues of bailouts....until he can unwind his positions.