

Shocking Fraud from Financial Scum - plesn
http://scienceblogs.com/goodmath/2010/04/shocking_fraud_from_financial.php

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plesn
A remarkably clear summary of the CDO/CDS fraud by a CS person.

The second part is particularly interesting and clear even if I already
understood the CDO/tranching part and what a CDS was. Basically, for banks to
sell all those crappy CDOs by tranches there where edge funds that where
buying the "bad" tranches and gambling that the "good" ones would also fail.

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bobdole2695
The financial markets have always been rigged. Men don't go into business
without some assurance they'll come out on top. The more money that is
involved, the easier it is to convince the watchmen that your edge is a
requirement for good markets.

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jing
This article is so incorrect that it's a joke. I guess there's a reason why
Michael Lewis and Maria Bartiromo don't talk about the differences between
splice() and sendfile()...

