Posts from 8th December 2007

8
Dec 07

The Vaults

FTPost a comment • 317 views

Something I’ve been meaning to do for ages now is restore some of the “lost” content of FT – essays, old blogs and writing experiments like Blue Lines and A Loafer’s Discourse – to the main site. This post indexes some of my initial attempts at this, apologies for the indulgent tone:

modern finance: the subprime debacle as a failed heath-robinson* contraption

Proven By SciencePost a comment • 19,307 views

contraption<—- clearly this contraption will work
click to see why this one won’t —->bucketworld

key:
RSMB = residential mortgage-backed securities
CDO = collateralised debt obligations
transparency = the contraption has it (you can see why the system failed); the alphabet soup of acronyms precisely doesn’t <— just because you mastered the shorthand doesn’t mean you see where it’s going to crack
tranche = i love this word so much, it basically just means “slice”, but if you asked for a “tranche of cake” the cakecutter is certainly obligated to give you MORE
*yes yes rube goldberg