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Redditor explains why IBM is not qualified to tell others that deploying apps should be less complicated.
OP posts a GIF of a dog that drops its ball into the street to get pedestrians to throw it back. User finds the exact dog in Street View, sitting in front of his house.
User who was at CNN town hall explains why student making a prepared speech wouldn't have made sense in the format of the town hall
User discovers karma farming in live action
Vietnam Vet explains what it means to be a hero
Redditor digs up 40 reposts of the same post
Redditor explains the average Trump voter's descent into the shocking moral depravity of the last few days
Redditor explains in detail how insanely "draconian" Bhutan's immigration policy is.
Redditor predicts Sylvia Massy will be thrilled. SPOILER: Sylvia Massy is thrilled.
Redditor Explains why Koalas are Terrible Animals
Erwin Chemerinsky, constitutional law scholar and dean of Berkeley Law on whether a sitting president can be indicted.
/u/exis007 explains what you should (and shouldn't) accept from a partner
Really well sourced comment rebutting a lot of arguments about conservative/liberal biases.
u/Noodleboom offers a glimpse into day to day life in the grim darkness that is the far future of the 41st millennium, where there is only war.
/u/LarBrd33 explains the secret origin of Fergie and the Black Eyed Peas
/u/BravoJulietKilo does an impromptu AMA on army logistics
Fresh Prince lyrics get processed by redditors
Redditor talks about malls and bombs, jokes about being bugged by FBI, gets bugged by the FBI
Helpful user explains every scale in iPad's Garageband, including one that doesn't exist.
Shaving and the Map of Tasmania
Redditor gives step-by-step explanation on how to pronounce a long german word
Jamie starts a golden train
Redditor shows us the drawings he turned in for art class, and the accompanying Sonic Fanfiction.
User perfectly describes why US is vulnerable to Russian bots
/u/jim_okc gives a cogent and pithy summary of the American political landscape regarding gun laws (and basically everything else, too).
/u/c_forrester_thorne illustrates how the deep state is simultaneously controlling everything and incapable of achieving anything
Reddit learns how to stalk Bill Murray
/u/derpynarwhal9 gives a perfect analogy for how to feel for lumps for breast cancer
User figures out who the sexual misconduct allegations on the Dallas Mavericks are on before it's revealed
User claims that yoga cures cancer citing research papers. Another user actually goes through the papers and shows how that's not the case
/u/BreezyBlue, just released from jail, last posted 4 year ago, mind blown that the Golden State Warriors are really good and Stephen Curry is a top player and Lebron James is still dominating
Redditor explains why the US recruited Nazi scientists, and lists some of the more notable contributors to the US space program
Redditor explains how the GOP and the right wing have contributed to the toxic political environment of the US
/u/Nakotadinzeo gives insight to human progress
User ericsvw proposes a new regulation regarding Gun Control that exists at multiple levels
Redditor experiences mishap in bus and blames the driver. Another redditor who happened to be in the very same bus gives a better explanation as to what happened.
A crazy professor about the breast obsessed society we live in
Subscription joke leads to user sharing a dozen EGG FACTS™!
Redditor notices the ghost of a Ghostbuster in an old picture of an old truck.
Redditor misses the mark on a GE stock prediction, eats his sock as promised, posts video proof
15 fiduke One important fact left out is that the credit agencies are in the business of grading securities. Companies like Goldman Sachs (GS) are in the business of creating securities. So if one agency grades all of GS products as garbage, they'll just use the other two agencies to grade. If you suddenly stop grading all of GS products, that's 10's of millions or hundreds of millions of lost income. Or you just give it whatever grade GS wants, and effectively become a rubber stamp company.
6 HombreFawkes OP has a nice edit in there explaining how he's not giving the banks a free pass, but at a certain level the banks were knowingly (or maybe even unwittingly) perpetrating a fraud. They saw the rules and gamed the system so they could maximize their profits and bonuses. The banks knew they were selling toxic assets, too, because The Big Short (book or movie, your choice) shows the cost to insure Mortgage-Backed Securities or Collateralized Debt Obligations through these banks went waaaaaay up while they were still selling the same products as if they were worth full cost. If I have to assign blame between someone who is negligent and someone who is fraudulent, the fraudsters will get the majority of it the whole time.
5 stratozyck I worked in Dodd Frank Regulation as a "model validator" for two years. The credit agencies are responsible, true. But I think the SEC should do their own ratings and hire competent people (and pay them well enough to keep them). We do stress tests (CCAR and DFAST) that honestly, are kindof a joke. By that I mean, the regulators do dumb stuff too. In my ideal world the SEC would rate banks and then let the market digest that. Taking on too much risk? Fine let stock prices adjust. The problem with having the Fed do stress tests is, in my experience, the best quants end up in the private sector. We had two rather bad quants that got fired and they both ended up at Fed. In one review of my work I actually had a Fed lawyer question me. His dispute? "How come last year when you reviewed this model there were more Findings?" Let me explain. We review models. We test them, try to break them and find fail points or unaddressed weaknesses. We make findings and enter them into a document. Model validators are under intense pressure from our managers and the Fed to maximize Findings as a show that we did work because managment cant really do quant work so page count and finding count of our reports was how they measured success. Result: a typical validation report would be 160 pages of redundant crap with 30-40 findings. More often than not, when I read others reports, they would miss the main model flaw but point out grammatical errors in documentation. As a result of the Dodd Frank act there was a quant hiring boom and they really scraped the bottom of the barrel in regulation. On the other hand, I cant blame Moodys. This isnt accounting fraud where you can tell numbers don't add up or are hidden. A common problem we saw in models is usage of "non stationary" variables to predict default or loss given default. They often used automatic variable selection methods and the auto methods didn't care about this. This matters because if you are predicting default and using say, GDP as a predictor, you will magically predict default rates to go down purely as an indirect function of time (GDP generally always goes up). We tend to think bankers at the top were plotting some evil stuff but in reality they figures their nerdy quants knew what they were doing and weren't equipped to judge their work and the banks didn't have effective internal challenge.
2 anti_dan The one thing that the OP touched on, but did not emphasize nearly enough, is that the reason the bundling to create "A" rated securities was done was because of the massive demand for high-yield-A-rated securities from pension funds (particularly state pension funds). These funds like CALPERS are significantly underfunded, and assume overly optimistic rates of return (7.5% annually for CALPERS). The only way to get that good of a rate of return is with a risky investment, but state legislatures (smartly IMO) prevent pensions from investing large percentages of their portfolios in risky stocks/bonds (so mostly they only invest in blue chip stocks with dividends and municipal securities). Mortgage backed securities are another, traditional, blue chip investment (because most people pay back their mortgages), however, they don't pay 8%+ interest, but risky loans can (but were never rated as 'A's by the ratings agencies). Thus, companies bundled these risky loans with good loans to satisfy their clients' desire for high-yield, "safe" investments.
1 Greckit There's plenty of blame to go around for the financial crisis so I just wanted to add that AIG were probably the stupidest motherfuckers on the planet for insuring all those garbage loans. Basically one of the big reasons for why the credit rating agencies were able to certify subprime mortgages as AAA was because the insurance company, AIG, was rated AAA and sold "insurance" on the mortgages in the form of credit default swaps. Everybody was paying premiums to AIG so that if some of these loans went bad AIG would take the hit and pay out just like ordinary home/car insurance. With a AAA insurer backing the mortgages the credit ratings agencies gave them a AAA too. The great thing about credit default swaps as opposed to ordinary insurance is that they're a form of derivative so they're totally unregulated (thanks Bill Clinton) and confidential so AIG never had to disclose the mountain of risk they were actually taking on and could keep that shiny AAA rating. So AIG just went on gold stamping any pile of shit they found while raking in millions in premiums for exposure that properly priced should have been in the billions. Of course when the shit hit the fan and AIG was on the hook for hundreds of billions the government swooped in and bailed them out, insisted that they pay 100 cents on the dollar on their credit default swaps (with the governments money) and they even paid the dumbfucks who made these deals their contractually obligated bonuses so they could keep their 'expertise'. Can you imagine fucking up that bad and keeping your job? Without these guys backing all the CDOs the financial crisis might have never happened.