Comments on: prediction-o-rama, finance style http://www.rethinkingmarkets.org/2009/02/11/prediction-o-rama-finance-styel.html Economic Sociology from the Ground Up Fri, 30 Sep 2011 15:24:01 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Peter http://www.rethinkingmarkets.org/2009/02/11/prediction-o-rama-finance-styel.html#comment-246 Peter Tue, 17 Feb 2009 21:54:16 +0000 http://www.rethinkingmarkets.org/?p=528#comment-246 Not exactly - the alternative future where I am wrong (and where it looks more like 1998) is where prices bounce back after wacky, panic-like activity. So that many of, say, LTCM's positions actually weren't as crappy as they were when they were forced to come to terms with them. I don't know what it means that the <em>good scenario</em> is 1998. The bad scenario that I would suggest is more likely is that banks try to get cute and re-bury their trash. Not exactly – the alternative future where I am wrong (and where it looks more like 1998) is where prices bounce back after wacky, panic-like activity. So that many of, say, LTCM’s positions actually weren’t as crappy as they were when they were forced to come to terms with them.

I don’t know what it means that the good scenario is 1998. The bad scenario that I would suggest is more likely is that banks try to get cute and re-bury their trash.

]]> By: Jenn Lena http://www.rethinkingmarkets.org/2009/02/11/prediction-o-rama-finance-styel.html#comment-245 Jenn Lena Tue, 17 Feb 2009 18:51:01 +0000 http://www.rethinkingmarkets.org/?p=528#comment-245 So this is what it would have felt like in 1998, if I had understood what was going on? So this is what it would have felt like in 1998, if I had understood what was going on?

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