• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Doom and Liars Poker

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Doom and Liars Poker

    I just spent 20 (of my client's) minutes reading an article by the guy who wrote liars poker. It explains a lot about how the whole current sub prime mess really got going and is very readable.

    http://www.portfolio.com/news-market...-Boom?tid=true

    I enjoyed it much, so thought I would share.
    The Mods stole my post count!

    #2
    Management summary please for a Daily Mail reader in Swindon. (9 fooking pages!)

    Comment


      #3
      Originally posted by DimPrawn View Post
      Management summary please for a Daily Mail reader in Swindon. (9 fooking pages!)
      Its all the fault of dark-faced immigrants for voting labour.

      HTH
      The Mods stole my post count!

      Comment


        #4
        Sooner rather than later, someone was going to identify me, along with a lot of people more or less like me, as a fraud.
        Sounds like how I feel
        Coffee's for closers

        Comment


          #5
          Originally posted by Spacecadet View Post
          Sounds like how I feel
          Proud owner of +5 Xeno Geek Points

          Comment


            #6
            Management Summary:

            The author was paid a 6 figure salary to gamble with other people's money, recognised he didn't have a clue what he was doing, thought that he'd had a good 3 years and got out before it all went narks up. Wrote a book about it 20 years ago - Liars Poker.

            20 years on his worst fears came to fruition, so he spoke to several people who had predicted this was going to happen, principally a guy called Steve Eisman. Eisman spent several years researching sub-prime debt and realising that the big boys were repackaging it, having it re-rated and selling it as triple-A rated (which allows pensions to buy in). Eisman spent some time finding the worst rated debt and shorting it - the best example being a Mexican strawberry picker earning $14,000 a year who barely spoke a word of English and was loaned every cent needed to buy a $720k house.

            Eisman followed the trail of bad debt, shorting every company that was exposed, when the crisis broke in September this year he was short to the tune of $600million on everyone from Option One to Lehman Brothers, Goldman Sachs and Merill.

            HTH
            Proud owner of +5 Xeno Geek Points

            Comment


              #7
              Originally posted by Ravello View Post
              Eisman followed the trail of bad debt, shorting every company that was exposed, when the crisis broke in September this year he was short to the tune of $600million on everyone from Option One to Lehman Brothers, Goldman Sachs and Merill.

              HTH
              There's only one problem with this (claim).

              When shorting stock you only have a very short time frame (days) to make your money before you have to supply the stock that you have shorted (usually at a loss).

              You can't "short" over a five (or even one) year period so to make loads of money doing it you have to be exceptionally precise with your timing.

              I don't believe anyone can plan on being that precise

              tim

              Comment


                #8
                There must be some long-term way of making money from shares going down though? Probably has "inverse" in the name somewhere.
                Originally posted by MaryPoppins
                I'd still not breastfeed a nazi
                Originally posted by vetran
                Urine is quite nourishing

                Comment


                  #9
                  Originally posted by d000hg View Post
                  There must be some long-term way of making money from shares going down though? Probably has "inverse" in the name somewhere.
                  Long-term spread bet?
                  ǝןqqıʍ

                  Comment


                    #10
                    Originally posted by d000hg View Post
                    There must be some long-term way of making money from shares going down though? Probably has "inverse" in the name somewhere.
                    Yeah - Options. If you think shares in a company are going down, you purchase "put" options which are the right to sell at a certain price and at a certain time. When the shares fall, you buy them at the low price and sell them at the price you have a right to sell at.

                    The opposite of this is a "call" option - the right to buy at a certain price at a certain time.

                    If all you know is that the share price will change, you can buy 50/50 call and put.

                    For most people its all just gambling though unless you've got a good portfolio or have got some insider info (and if you have then PM me ).

                    Comment

                    Working...
                    X