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  1. #1

    Fingers like lightning

    Pickle2 is too good to be a permie

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    Default 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. #2

    Richer than sasguru

    DimPrawn is a fount of knowledge

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    Management summary please for a Daily Mail reader in Swindon. (9 fooking pages!)
    I was miserable and depressed, but CUK turned it all around. Now I'm depressed and miserable.

  3. #3

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    Quote 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!

  4. #4

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    Spacecadet is a permanent contractor

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    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

  5. #5

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    Quote Originally Posted by Spacecadet View Post
    Sounds like how I feel
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  6. #6

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    Ravello is too good to be a permie

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    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

  7. #7

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    Quote 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

  8. #8

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    d000hg - scorchio!

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    There must be some long-term way of making money from shares going down though? Probably has "inverse" in the name somewhere.

  9. #9

    Dirty kapitalist spekulant

    DiscoStu has more data than eek

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    Quote 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

  10. #10

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    Quote 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 ).

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