Standard & Poor’s just drove a huge harpoon into the heart of the mortgage credit bubble,

[sdrealtor]

Beebo,
What happened to your Housing Market Bull Costume? Is it at the drycleaners this week?

[Anonymous]

Yes, yes… The Mensa-member slick grey suits with MBA’s and PHD’s employed at those pimp jobs at Moody’s, S&P, and Fitch must have been ginormously exuberant eternal optimists (which could be the main recruitment requirement for their pimp jobs.) Not a single one of them was a doom and gloomer -until a few days ago when it was made clear to them that real estate does not always go up, up to the blue-sky stratosphere.

The MBA’s are hired as the pimp job salesmen. The PhD’s job is to figure out the real numbers—and for that, they want mensa-member cynical rationalists.

I think it’s quite likely the modelers knew exactly what was up and all the assumptions and limitations—but they also were informed precisely what the business model of their employers were all about.

There’s probably “Models we use for our sales brochures” and “Models we use in-house”. PhD’s are probably hired to make the first seem as ‘real’ as necessary.

[Anonymous]

Yes, yes… The Mensa-member slick grey suits with MBA’s and PHD’s employed at those pimp jobs at Moody’s, S&P, and Fitch must have been ginormously exuberant eternal optimists (which could be the main recruitment requirement for their pimp jobs.) Not a single one of them was a doom and gloomer -until a few days ago when it was made clear to them that real estate does not always go up, up to the blue-sky stratosphere.

The MBA’s are hired as the pimp job salesmen. The PhD’s job is to figure out the real numbers—and for that, they want mensa-member cynical rationalists.

I think it’s quite likely the modelers knew exactly what was up and all the assumptions and limitations—but they also were informed precisely what the business model of their employers were all about.

There’s probably “Models we use for our sales brochures” and “Models we use in-house”. PhD’s are probably hired to make the first seem as ‘real’ as necessary.

[Author]

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