Soup /b/, Ask a hedge fund trader anything, >same OP as

Cmon, I know you want too

>>582047871
to*

I have saved €20k. I don't want to leave it on my account or put it on a bank-book. I don't want to try it with shares... Shall I spend it on whores drugs and alcohol?

What exactly is a hedge fund and why do they tend to ruin economies?

>>582048053
Absolutely. If you won't miss it, professionally, I think you're duty-bound to

what are your thoughts about CFA?

>>582047491


to what level is your product a scam?

>>582048369
Hedge funds don't ruin economies, people do. 08/09 was caused due to the public over-estimating their wealth. So a hairdresser earning 20k/pa was able to take out a 10m mortgage by saying she earned 300k/pa. now, whether that was the banks fault for allowing it or the hairdressers fault for lying, you be the judge.

Hedge funds are a communal pool of investors money, which is invested in accordance to the fund managers strategy, be that long/short, long only etc

>>582047491
Why can't you beat the market like me?

>>582048967


LISTEN TO THIS PROPAGANDA

"The melt down wasn't wall street's fault it was the people"

Sell your shit somewhere else faggot

>>582048597
Shit tier, entry level banker position. FA's are the starting block in an IB, to be an independent FA is like being an office temp. Great if you love it, but no good if you want to actually make something of yourself

>>582047491
I'm curious about investing the penny stocks and try to make some quick cash. I have a friend who has a little bit of knowledge and knows someone who has a lot of knowledge on the subject. I don't know shit about it, but I trust my friend and have a little bit of disposable income. What are your thoughts?

>>582048967
You real stupid, and most likely not a hedge fund trader. People weren't lying about their income to get loans, stuff like that is easy to check you mong. Banks just allowed everyone to loan because the equity people were loaning against (housing) kept rising in value, so no risk, unless ofcourse housing would drop in value, it was dumb, like u.

>>582047491
I have won about $1500 playing lottery help me flip it

>>582049802

agree. OP is a joke

>>582049121
Because you're a retail day trader, without a strategy founded in reason.

>inb4 pretty chart patterns
>inb4 wut comissions
>inb4 why u pay for data

Leveraged to the hilt, 1 or 2 positions does not a trader make, thats a gambler. And you know it

>>582049292
I never said it wasn't Wall Sts fault, I never said it was the peoples fault, I gave facts and left it up to you, I just said it wasnt funds fault

>>582049769
Never touch OTC stocks. the regs are so minimal, they're prone to scams, pump n dumps and the like. your money is best in blue-chips. If you're hell bent on quick cash the markets not the place, try the casino.

>>582050430
>what about reg stocks?

Also Can anyone confirm?

>>582049802
Well, its obvious people lied on their loan applications you retard. they were called 'liars loans' in the banks.

Property prices kept rising because of the ease of finance you fucking spanner, prices didnt rise, and then people financed, jesus you're stupid.

>gtfo

>>582049917
Right now? 3x leveraged short index should see you through the next 6 months

>>582047491
Is a finance degree worthwhile

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40KB, 342x298px

>>582049995
>tfw I don't even day trade, I just understand which company has the best future.
>tfw diworseification is a hedge against your ignorance.

>>582050728
not reg stocks, the regulations on trading off exchange (or OTC) are minimal allowing scam artists to thrive.

>>582051118
Yes, if you want to work in an investment bank. But you'll need to be top of your class. If you''re interested in brokering and market making.

>>582049430
not financial advisor.. chartered financial analyst

>>582051220
diversification is key to capitalize on outperforming sectors.

>2012+2 thinking having diversified interest is bad.

Please, what fund/prop are you with? If you were as shit hot as you claim you'd have been picked up

>>582050828
Housing rising in price and the ease of house loans was feeding off eachother you retard. It's okay you don't understand, not your fault your intelligence is mediocre at best, gl trying to match the markets return, you will need it.

>>582051437
Yeah Stockbroking.
Hoping it's as lucrative as it is competitive

how many jew do you meet per hour ?? jph

>>582051608
Yeah, its low tier. FA chartered or otherwise is the lowest rung on the financial ladder.

But it depends on your goals, if you want to do that, yes its great, if you want to broker, get in an IB, they'll work you through. If you want to trade, the best qualification is an active K%. On a CV a K% usually gets an interview.

>>582051437
I've also been playing your salary over In my head all week man

Any general advice for a kid on how to get where you are? (Wannabe stockbroker getting finance degree here)

What the best invest today with only 30.000 dollars?

>>582052101
In that case you're on the right track, but remember its a sales job, and you're selling your ideas. It can make you 10m/pa, but I know brokers on 50k, and have been for 20 yrs.

>>582051847
Let me break this down for you. It's like a horse race, I know which horse will win and ofcourse I am betting most my money on that horse, you don't have the capability of predicting the outcome with a high probability so you have to hedge your ignorance so you don't lose it all.

I don't work for anyone, I don't have to. I have made a large amount of money at a young age and am now just living off investing what I have.

>>582052565
Is your name christien?

Hi i'm a 17y/o who's finishing lycee then will go to Solvay Business school in Brussels, i want to make money do you think trading is a good way ? How to start ?

>>582047491
I inherited over 160k

After paying debts I have 135 left

What do I do with it

>>582052354
From the last thread, welcome back bud.

as for advice, work hard & make friends. the later being more important. Its not the grades you make, its the hands you shake. you need one billionaire in your book and you can retire, or 1000-2000 average folk

And, get trading, even if its CFDs, get a little record going, you'll be a step ahead going into an interview with actual results, doesnt even need to be a big account, grand or so, focus long-only, put your money where your mouth is, make some calls

>>582052387
Cash.

a lot of unease in the market as a whole, the cycles nearing its end, hang fire for 3-6 months, buy whatever you like at a 30% discount then

>>582051045
Anything else?

>>582053225
Alright I appreciate the advice, saved for reference

Yeah you said some things that stuck with me last thread, seems like you've pretty much won at life. All I hope is to be able to get where you are someday.
Thanks again.

>>582052673
and if your horse trips and breaks a leg at the first jump? you're fucked, your account is fucked. Live to trade another day, and by betting everything on one position you're literally setting yourself up to fail.

If it works for you, great, congrats, but the odds of that strat working is stacked against you. thats just the statistics. so if you're BSing, well, now you know, if you're not, good for you, but know your risks, the numbers say you shouldn't be making money.

Also, good for you bud, its a luxury to do well young that may aren't blessed with. Was that in finance or another business? Just curious

Have you seen/heard of many Canadian guys where you've worked over the years? Like Queen's, Western/Ivey, McGill, UBC Sauder kids?

>>582052679
No, David.

>>582052952
Hold it for 6 months, depending on your risk profile, a 10 x bond ladder would suit most people. If you're a little more adventurous a market tracking ETF, or try your hand at stock picking, in 6months. you dont want your cash in the market long for the next few months.

>>582052760
Start at the top, read the free publications & reports; ISM, Housing, Jobs, etc. Get good at predicting the whole market, then when you're good, try narrowing it down to sectors, when you're good at that, then try stocks. dont exceed 10% postion sizes, you should be OK, good luck!

>>582054643
answer my question faggot how many jph ??

>>582053679
Cash. But its your money, but from /b/tard to /b/tard, the unease is palpable, its not a time that new investors should be piling in to the market. I'd reccommend holding for a while, but if you do buy in, do your research, and best of luck.

>>582054113
I have 50-90% in my top pick depending on what I expect from the SP on the short term, I am 98% sure of the company doing well longterm. I am willing to take on the low risk of a black swan event happening as I haven't found any other opportunity to make an expected 1000% return over the next 10 years. Very, very few stocks where the stars align.

>the numbers say you shouldn't be making money.

Statistics would say I will see very high volatility, but an expected average return. The statistic average doesn't apply to everyone though.

Made my money playing online poker, which one could argue fundamentally is similar to investing.

>>582053985
I've done OK, if I can do it, you sure as shit can, fuck, we frequent the same back-alley cesspool of a site. We cant be that different.

>>582055372
Thanks op I appreciate the advise

>>582054178
Yeah a few, I couldnt tell you where they studied though, I know a few over at JP, associate level, so they must know something.

>>582055608
Cheers, hope so m8 - wanna greentext how you got your foot in the door for us all though?

And that's actually what I love about /b/. People can come from all walks of life and still be equal trash on here. We got professionals like doctors and lawyerfags shitposting alongside NEETS. inb4 muh secret club, but it's like the Freemasons in that regard.

>>582047491
how do you feel about bridgewater

>>582055456
I cant argue with that. The fact you can draw comparisons between poker and investing, I may have underestimated you, my apologies.

1000% over 10 years? regardless of market? You must see that that's a serious claim to make. I cant think of any fund that can beat 30%pa...

OP, what has your fund pumped the most money into this year? And for what % return?

>>582055007
Ok thank you ! Have you any website that you can advice me ? And when i judge me good to start, How do i start ?

And just to be sure (because i'm totally neophyte :D You told me to look all the market then find one sector, look more at this sector until i can predict it almost perfectly )

>>582047491
eurofag here.
I have a BSc in mathematics with decent grades and have been trading for the past 2 years. Should I send my application to privatbankiers (Vontobel, Merck Finck) or go straight to Deutsche Bank,Unicredit Group etc.

Appreciate your answer

>>582056328
Ha! I like that, /b/ = freemasons, I can see the similarity

Well, I greentext my story in the last thread, But I can do it again, with a touch more detail,

>be me
>be shit in school
>suck at everything no mates.jpg
>see Wall St
>cocaine in a limo
>yes pls
>get good at math
>still shit at everything else
>drop out
>score job at bank
>not broker but as a teller... pissed
>put my paycheck into trading account
>make bank
>out earn my boss
>debate higher-ups on stocks
>fastracked onto brokerage arm of bank
>gave shit hot tips
>every client loved me, every other broker wanted me dead.
>wouldnt put it passed them
>mfw patrickbateman.jpg
>catch attention of big boy managers
>transferred to wealth management
>spend 3 weeks in orientation
>nothing I already knew
>be today
>26
>be on /b/
>make this thread to help aspiring faggots to get in the game

>>582056852
I do, its kinda funny. I held all my poker earnings in a high yielding bank account for several years as I though beating the market would be nearly impossible, because of the fact that far most of the money is being invested by the best of the best in the world, and I wouldn't want to sit down at a table and play poker against the worlds best poker players either (wasn't THAT good). But as I started looking into stocks I found that the market was a lot more irrational than I had thought, it came as a big surprise, a good surprise though.

>I cant think of any fund that can beat 30%pa...

It is also pretty much impossible if you diversify too much, like I said I don't know of any other stock where I have even half the expectation, if I was forced to keep a max of 10% in any one stock I would be happy to get 15-20%.

>>582057418
we've had a few,
>FB has been a good one, had that on my book until last earnings where I was stopped out in the black,
>Apple, because, applefags,
>Sun Communities,
>Nvidia has been a great one, & short AMD

>>582057418
and, 30-35% per trade, incl hedge, with a total trade risk of ~2.5%

>>582054643
I've had it for like a year now

>>582059083
Very solid numbers for such low risk.

Any tips for somebody with 5k who wants to start investing? I heard you call out wait 3-6 months earlier, so what about after that?

Also, I wasn't in the previous thread, what's your salary?

>>582058209
Private banking will get you further than IB. If you're set on the banking industry, private>investment. Plus you won't need to take crack to get you through the day, and the pay is better.

If you've got the choice between private and investment, I'd take private every day of the week. Its not as stressful, you're not 'in the trenches', you dealing with intelligent people, who know what they want. Id take that over a phone and Morgan's client book any day

>>582059976
All in im around $1.1 a year, with most of that coming from a bonus, last one was $750k, that was a year ago, next ones due next week, so im hoping for more, but we'll see. When I get the check I'll make a thread with it.

The single greatest rule is KNOW YOUR RISK.

Long market because 'it always goes up', is bullshit. dont do it. thats not how gravity works, why would stocks. Start out from th top down, read the reports, predict the market as a whole, then put your money where your mouth is. Get good at the, do the same for sectors. then, stocks. Limit yourself to 10% per position, 5% long-5% short, if you're feeling clever, stop yourself out at 2%. Put the work in, you'll go far.

>>582060187
OP thanks a lot.
Did you actually get your master's or jumped straight after your BSc into the investment world?

As always, thank you for answering

>>582047491
Hi, I'm a worthless menial shlub working a dead-end civil service job. What's the best way for me to not have to work anymore?

>>582059642
What can I tell you, you missed the boat. Sorry, it happens. Best thing you can do is sit on your hands. I get its frustrating, but better frustrated not, than 30% poorer in half a year. I'd really advise against piling in now out of fear-of-missing-out. everyone wanted in tech in 2000 too..

Do you also do shrub funds?

>>582047491

Die horribly pls.

How does it feel to be replaced soon by trading computers like half of the City in London?

>>582061796
....I'm pretty sure I can still invest it in something.

>>582051045
I wouldn't be short this market if you put a gun to my head. Also, while I think the CFA is a bunch of shit too, it's generally really well respected. I wouldn't dissuade a kid from getting it.

What size fund do you work for?

>>582062270
His job is totally different. Computers are very good at picking up very short term patterns and basically spooking out other computers. The whole high frequency thing is probably going to get banned, despite how much the exchanges love them.

>>582061587
>Save.
>Get yourself a pot of cash.
>Commit to investing, none of this filthy casual one hour a day BS.
>Read the WSJ.
>Have Bloomberg on your TV every hour you can, hell the Bloomberg radio is even OK.
>Get in amongst it.
>Read economic reports (they're boring as fuck, but the information is in there, information that pays),
>Start making calls
>'wow, pharma seems strong'
>watch pharma
>pharma is up this month
>wow
>do that until you're comfortable
>now, take that pot you've been saving
>money where your mouth is
>behave, dont get too big for your boots
>10% positions
>2% risk
>????
>profit
>tell your boss to fuck themselves

With $10k, it'll take about 10 years to make a million. That is wilst geting a safe income on the way.

>>582061534
Barclays put me through a BSc, thats as far as I got in traditional education

>>582061302
Damn /b/rother, that's a shitload of money.

You say 5%/5% for long/short; is it possible for individual investors to borrow stock from brokers to short them?

Also, any people you work with transitioned from another background? I work in Consultancy (financial sector, end-to-end technical implementation) but would like to make the jump into wealth management/private banking and just wondered if you know anybody who didn't just study Finance/Maths at uni, do some internships in finance, get a job in finance.

>>582048967
and you guys were the ones who believed the hairdressers so you could pay get a bigger bonus

>>582062550
Then, more power to ya. Look for low beta staples, things that people cant live without. Assume the world will end tomorrow, last thing people 'need' is a Rolls Royce' for example

>>582062565
Its like the IMF, great if you have it, but... meh? Its not going to get you to CEO of JPM any faster.

The fund, as of Friday was $1.2bln, my portfolio, is year beginning cap of $20m, now $26.1m. Its not great, sure, but I'm the 3rd best on my desk, so, theres that.

thoughts on working in sell-side research vs. research at Fidelity, Wellington, T-Rowe vs. small hedge fund?

>>582047491
I am kinda coasting, working at MIT these days. But I keep a home in NY and know a few hedge fund types and keep that as an idea in my backpocket for a fallback career. However, I'm 36 and I think I'm getting a little old to make that change.

I mess around with options a little bit. I stay away from futures, since I don't feel like I have a strong grasp, but I really regret missing out on the recent short play on oil that I saw coming.

Is it worth looking at finance as a viable career path anymore? Is there anything you could suggest (infrastructure-wise, mostly) to improve my personal trading (maybe grow into a serious prop-shop)?

I really want some financial independence. I probably wouldn't go into finance, or maybe I would take MIT's money to go into it. But, most likely, I could just continue to coast indefinitely if money wasn't an option. As it is, my current arrangement probably has a year left, and I'm too lazy to get anything seriously entrepreneurial going.

I'm fascinated by stories like Cornwall Capital and asymmetric risk.

tl;dr - Set me up, my nigga.

>>582063408
No, that was the credit side of the IB's. Thats why an FA in say Goldman, used to get paid $200kpa, now they get $50k, if they're lucky. The losers of 08/09 were the people who took out the loans, and the investors that bought the MBS from the banks.

Dont get me wrong, I cant stand IBs either.

>>582047491
What do I have to do to get a job?

>>582064329
*The IMC, lol, Fucking IMF.

>>582047491
so do you find people that are dump enough to pay 20% on commission to get the same return with usual risky investments?

>>582050186
Shut your fucking mouth.

It was planned, or a lot of people think they are smarter than they really are. Either way, it is fun for me.

>>582064456
Fund, or prop. no question.

One thing is constant through all areas of finance, we're all here to make as much as quick as possible, and fuck off somewhere hot with scantily clad ladies.

Trading will ensure you get there faster. plus, with 90% of funds, theres no lock-up on share-bonuses, no inter-fund poaching: an overall sense of community if you will.

But if you want the cut throat $60k job, working 20hr days, Research will get you that.

>>582064329
$1.2? bitches are still flying commercial. Even with a nosebleed fee structure.

When I was on the sell side in research, my clients were SAC, Diamondback, Galleon. Those fuckers are all basically gone now.

Back on the buy side now. Plain vanilla. Starting to get bored again. Sitting for the CFA next week. Fucking hard ass exam.

You're short now, even going into December?

I get it, to some degree. Some of the forward-looking indicators have rolled over a bit, but it's hard to short this shit.

>>582055007
Ok thank you ! Have you any website that you can advice me ? And when i judge me good to start, How do i start ?

And just to be sure (because i'm totally neophyte :D You told me to look all the market then find one sector, look more at this sector until i can predict it almost perfectly )

>>582047491
my mentor told me that mutual funds are beginning to shrink because people rather just put their money in the S+P 500 as it beats managed funds 80% of the time over 10 years and has less commission. how true is this?

>>582065513
Can confirm what he's saying about research. It's a soulless grind. The good news is, if you want to do something else, it's usually an easier transition. Just don't go into research and think you're going to be balling out. The only balling you'll be doing is on the firm's tab with clients, and even then you'll be wishing you could be sleeping.

I spent $40k of my firm's money at Scores. In the course of about two hours. My boss didn't even bat an eye.

>>582064685
Every trader has the 'if only' story, it happens, it doesnt matter. keep on, keeping on as they say

lol, well, age does factor into the prop side, I mean, Im 26, and Im a fucking dinosaur on the floor. But thats fine, Im looking to do what you want to do, coast.

The key is to have some money behind you, and an MIT brain, you;ll be able to process the information on a useful level. Its getting the confidence to back yourself instantly, instead of missing out and saying 'I told you so'. You need to think, 'Californian earthquake? buy western home-builders', not 'earthquake, how sad'.

If you've got the mind for finance, it really is the perfect place to coast.

>>582047491
You mention hanging fire for 3-6 months if you want to invest now.
Currently have couple of funds that are around 20% up would it be good idea to sell them now

>>582065189
And 2% for the privelige to have it managed

Your firm didn't have any MBS? I think AIG should take more shit for the crisis, they more than anyone should've at least considered housing prices dropping

>>582064787
Meet people, and bullshit your way through.

>nobody really knows what they're doing

I recently, somehow, managed to find myself working in tech at a large, multinational investment bank.

>>582058262
>>582061302
>>582063074
Oh damn, smells like bullshit to me. I should've read before I started replying. No education and worked up from teller to a hedge fund desk (by age 26, no less)?

I think we have someone that works at an investment firm/bank with delusions of grandeur here. Definitely not a 2 & 20 pro.

>>582065545
Haha, we use one of the barclays jets, management just took delivery of 3 bombardiers, I'm yet to fly on one, but xmas party in vegas in on the cards, rumours of course.

Net short absolutely, I mean obviously avoiding the big retailers, but theres zero confidence, the world is about to sneeze, and the US will catch a cold.

>>582066718

>Nobody knows what they're doing

Including you, op

>>582066567
I'd say so. Unless you trust the management 100% to see it coming, you'd need to read into your last quarterly report, but switching to cash is definitely a good move, imo, that is

Hey OP you wanna loan me $100 at 4%, I would've got 100% on my investments over the past year if I had any money to make any investments.

>>582067113
Please, I wouldnt be caught dead in an IB.

You don't have to believe me, thats the beauty of /b/.

>>582068073

What, you've never been on a floor with uncertainty? let me guess, long-only mutual? must be nice getting paid on AUM not performance....

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>>582049430
>banker
>make something of yourself
lol

>>582066650
Asking a hedge fund trader if their firm held MBS? MBS, pre-crisis were akin to Treasuries. Low risk, low yield. The "toxic" shit that was backed by liar loans and the like might have been owned by some funds, but probably only funds that specialized in fixed income investments and even then, only small exposure. The reason why the fall was so hard was because those shit-tier MBS were stuck on bank's balance sheets, creating a liquidity crunch in the markets. Meaning, banks had to sell shit into a market where there weren't enough buyers to make reserve requirements. This selling across all asset classes hurt all the markets. Shit got real, and fast. The fucking overnight rate was trading at a 200 bps spread. THE OVERNIGHT RATE!

I know this means nothing to you, but hedge funds didn't start getting interested in MBS until they got beat the fuck up.

>>582068834
I'd talk equity with you, is that 100% leveraged or net?

>>582052245
Confirmed for fake and retarded. CFA is the lowest rung on the financial ladder? It is commonly viewed as one of the hardest exams, ever. Cfa's are geniuses and make fucking bank for it.

>>582068981
You're just an idiot kid who is in sales. Thats all I'm going to say.

>>582068981
I don't doubt that you work around hedge funds. You just don't have the resume that projects front office, so it's pretty hard to believe. And the story of how you got there is highly unusual.

I know a bunch of hedge fund traders, former colleagues, and you're talking Harvard PhDs in physics here, just to get in the door.

>>582069450
Please, analysts are the bottom of the bottom.
FYI, IB rankings are:
>FA
>associate
>MD
>Exec

>>582069935
You have no idea what a CFA is do you?

How do you best start one? I feel like all you need is to convince some rich assholes that you're better with money than they are.

Basically all you do is take other people's money, jam it in something that takes on a shitload of risk, and hope it pays out. Only way to beat the market, and every incentive to do so, other than ruin your reputation.

>>582055007
Have you any website that you can advice me ? And when i judge me good to start, How do i start ?

And just to be sure (because i'm totally neophyte :D You told me to look all the market then find one sector, look more at this sector until i can predict it almost perfectly )

Hey OP, I'm going to be studying chemical engineering and I've heard that a substantial proportion (maybe 5%, substantial considering it's a vocational course) of graduates go into finance and earn more than graduates who work as engineers. What could I do to make myself more attractive to financial employers? What kind of work would it involve?

>>582070438
Chemistry isn't for you.

>>582071080
Care to expand?

>>582054643
What makes you think we're at the end of the current cycle?


>inb4 he's likely pumping

doubtful on /b/

>>582071269
I wish, but that is impossible.

Only if I had a way to manipulate minds with absolute freedom could this be possible.

However, I would also need to hone a few more skills and there is only one way to get the experience I require.

>>582047491
Independent (fee-only) financial advisor, or cheap index fun for the average dickhead like me who can't be bothered managing this shit himself?

>>582069114
Ok I guess my sarcasm didn't translate to text
>>582069320
Net

lastknights.com

>>582072056
Cheap index fund. Depending where you are there are plenty of index funds that track the major stock indexes which will provide you with a great return with minimal fees. I have a few index funds and the highest has a mer of like .53% which is ridiculously low. With actually picking securities it's not so much as actual stock picking as it's more asset diversification. You're going to be spending too many fees to try and get the portfolio you want when a simple index fund will grow your investment at a moderately safe and quick rate. My index fund in less than 30 days grew over 6% and all that does is track the S&p 500 which I feel is the best index to track.

>>582071732
Dude what?

>>582072394
while this looks fun, gonna have to engage in altruistic hustling again since i need to move on with unnecessary bullshit in life.

how does one get into this after they have a pot of money?
are you guys saying become a licensed something? go to wall st every day to buy and sell these things?

>>582073412
know just know where to put the money.

you can do this on scottrade.

Once you have the initial capital you can do whatever you want.

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>>582047491
What is the most important criteria when investing into shares?

>>582074059
You shouldn't think of it like that. You invest in a company and therefore receive a share of said company. You don't invest in shares.

>>582047491
This thread is full of people who don't understand the difference between a hedge fund and a bank

>>582048967
People buying houses they couldn't afford would have happened in the first place, and would have been an issue if there was a remotely sane assessment of risk in the financial system as a whole.

The heart of finance if risk management. It doesn't matter if you assume a huge risk if it is returned with an equally huge reward. Likewise taking on a small risk, but where the reward is even smaller than the risk, is stupid (ie the vast majority of stocks: "Yay let's take 6% interest for stupidly high volatility! Doesn't make any sense you say? Well just change the math so that estimate does make sense!").

People taking loans out of homes they can only afford the interest on is fine as long as the people offering the loans and selling the loans price everything with the appropriate risk. The big problem in 08-09 is a massive underestimation of the amount of risk spread throughout the financial system.

In general there is this belief that "doing risk things" is what makes finance fuck up. But that's not at all the case. Financial crises occur whenever there is a systemic underestimation of risk, independent of how 'risky' the underlying investment is.

>>582074548
banks have poor clients =P

>>582074601
>People buying houses they couldn't afford would NOT have happened in the first place, and would NOT have been an issue if there was a remotely sane assessment of risk in the financial system as a whole.

missing some words

>>582070438
Seriously would anyone feel like weighing in on this?

What the fuck do I major in in business school to become something like this?