yestrusocialist
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User ID: 2545
yestrusocialist
10mo ago
I don't think you quite understand what was done. The risk reduction comes from being in the senior tranches and taking losses last.
This happened. Folks owning the senior/low risk tranches lost the least, exactly as CDO sellers promised. (This is quite mechanical and unsurprising.) The stress tests at the time did not assume uncorrelated losses - that's dumb, even for a regulator.
CDO sellers who kept the junior tranches (I.e. first losses) went bankrupt. Why would they do that if they were selling the senior tranches with a false bill of health?
yestrusocialist
10mo ago
The bill of health wasn't false. It's trivially easy to take a cdo prospectus and simulate what happens in the event of a catastrophic drop in house prices.
It's just that everyone - buyers, sellers, rates, regulators, all assumed that this was a very low probability event. Reality turned out to be worse than nightmare/worst case scenarios in various stress tests cooked up by regulators.
The sellers (who are often accused of fraud) kept the risky tranches on their books while selling the safe ones - the opposite of what one would do if they knew the risk.
yestrusocialist
11mo ago
Trump deserves significant credit" surprised me, a little, since Democrats didn't shy away from giving Trump credit for Operation Warp Speed,
Wait what?
Who is the most mainstream Dem you can cite who acknowledges Trump saved millions of lives and got a vaccine out at a speed they previously categorized as "misinformation"?
yestrusocialist
11mo ago
Maybe the CEO is a specialist in managing decline.
A regular CEO might be able to extract $10B profit from a declining company, but he can extract $15B before it dies. If I were on the board of a declining company, I would surely want to hire this guy.
yestrusocialist
11mo ago
For my stocks, at the moment they vest (a taxable event) a fraction of them are sold and the proceeds are given to the IRS as tax withholding. This is pretty common in the US.
No extra forms. It goes on my W2.
In India it is possible to know the cost. The hospital knows that some procedures have complications and prices that in. If the 4/5 patients cost 75k and 1/5 costs 2 lakh, they charge all of them a flat 1 lakh. You pay 1 lakh before the procedure and your obligation is done.
This is possible. The US having a different situation is a choice the US made.
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