Selva Brasilis

Um país que evoluiu da oca e senzala ao abismo, barbárie e caos, sem ter experimentado a civilização

Tuesday, May 26, 2009

Um Picareta Profissional: Myron Scholes

O autor bate bem no picareta: "When you hear such nonsense from insiders like Scholes, you have to wonder: are these guys lying through their teeth or just deluded? In general, I’d say the lower-level guys usually believe the nonsense. I know from personal experience that most of that most of these Scholes-number-crunching types believe in their risk models in much the same way Christian Scientists believe God will cure their syphilis. The proof is that they put their own funds on their crazy models. When Scholes’s LTCM firm collapsed, nearly all of the principals lost their entire net worth because it was 100% invested in their own fund. But these are just the disciples. The high priests, like Scholes, are playing a much more cynical game. Scholes knows, can’t help but know, that the model has failed. He’s stonewalling for a very simple, sleazy reason: his whole life depends on it" .
SELVA BRASILIS at 3:40 PM
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