Rolling Stone subtly blames Indians for the crisis

mar 23rd, 2009

 

i have been thinking along the same lines, to be honest. the subprime crisis is actually the revenge of the IT guys. the posh bankers with their million dollar bonuses lost control of their operations to the backroom quant-jocks, a bunch of whom are in fact indians. the rocket scientists did what they were asked to do, and the bankers soon couldn't understand what they were doing. but their greed prevented them from stopping the quant-jocks from inventing even more bizarre models.

 

this is payback, in a way, for robert clive and the raj :-) take that, anglo-americans :-)

---------- Forwarded message ----------
From: swami

http://www.rollingstone.com/politics/story/26793903/the_big_takeover/3

 

Check this out:

The problem was, none of this was based on reality. "The banks knew they were selling crap," says a London-based trader from one of the bailed-out companies. To get AAA ratings, the CDOs relied not on their actual underlying assets but on crazy mathematical formulas that the banks cooked up to make the investments look safer than they really were. "They had some back room somewhere where a bunch of Indian guys who'd been doing nothing but math for God knows how many years would come up with some kind of model saying that this or that combination of debtors would only default once every 10,000 years," says one young trader who sold CDOs for a major investment bank. "It was nuts."