The Formula That Killed Wall Street

[allodial]

NOTE: What the MSM probably didn't tell you is that brokerages and financial institutions started using this untested formula on the wide and it was highly untested. The formula was allegedly created by David Li when he worked for CIBC (Canadian financial institution). He goes over to JP Morgan, Citigroup then Barclays and ultimately heads back to China where he works for a Chinese financial institution. Next thing: XHTF... or something like that. He basically planted a mental trojan horse and XHTF. Another thing, the Li family name is associated with old school Chinese money and power.

Using this formula they created an oversold market. The formula was known to have flaws. Li and possibly others suggested that incorporating historical records in analysis wasn't necessary with the forumal so..they went forward with a vengeance. And the bubble burst...bailout. Surprise? It smells 100% of semi-silent warfare. Perhaps the formula or charlantry, if any, appealed to an already existing systemic greed?


(Why does this smell a lot like bitcoin?)


Is that what Kim Jong is laughing about?

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A Recipe for Disaster: The Formula That Killed Wall StreetGaussian copula function[ATTACH=CONFIG]2362[/ATTACH]

The Gaussian copula function is a standard statistical technique. But in 2000, a numbers guy at JP Morgan Chase tricked it out as a quick and dirty way to quantify risk in very complex financial instruments.Forbes]

Wikipedia)

Related:

• Taylor Effect
• On Default Correlation: A Copula Function Approach (David X. Li) (April 2000 draft of 1997 working paper)
• Formula From Hell
• Collateralized debt obligation
• The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It

[edward222]

Whats the name of that person who crash the stocks?

[David Merrill]

Interesting!

The mind bomb seems to be instilling confidence in transactions.

[allodial]

Whats the name of that person who crash the stocks?

David Li created the algorith/mind bomb but it took insiders to perpetrate spread the virus. Bitcoin has similar 'mysterious' origins.

Interesting!

The mind bomb seems to be instilling confidence in transactions.

I suppose that in "the hood", mind bombs are called "long game" or "short game" depending on how long it takes the con to play out. Deep pockets tend to be associated with "long game" and so do bigger cons. Its uncanny how British/Old english terms and idioms still live on in "the hood".

[edward222]

David Li created the algorith/mind bomb but it took insiders to perpetrate spread the virus. Bitcoin has similar 'mysterious' origins.

That man is a genius .
His on the jail right now?
or the government hired him?

[allodial]

He used to work for China International Capital Corporation (Beijing) as head of the risk management department. According to his Linked In page he now works for AIG in New York.