Score
Title
1073
/u/ChaiKnight offers an excellent rebuttal to another user's claim about Nazis and their links to socialism
558
Lawyer calls bullshit on OP's story about ruining his landlord's political career and getting his lawyer disbarred
6751
Former arborist and redditor gives extremely detailed and surprisingly interesting tree care instructions, potentially saving a beautiful Sugar Maple in full foliage bloom from future wind damage.
207
Brit offers detailed instructions to Danes on how to get an A on their history test, bring down the Education Minister, and get a free meal to boot
8927
Indiana resident describes the drama and pain of trying to defend a needle exchange program from a bigoted county commissioner
8
u/mi-16evil gives a fantastic plot summary of the new Oscar bait movie "Geostorm" - Warning Spoilers!
8
/u/MAG7C helps redditors decode the true meaning of Led Zeppelin’s Whole Lotta Love. Turns out the same formula works for most other “love songs” as well.
8
Reddit user finds perfect euphemism for piracy
6
Lawyer lays down an itemized /r/quityourbullshit
1
User makes a case for Stephen Speilberg as one of the great directors, using examples from several of his films.
12046
Redditor breaks down exactly how Bit Coin Mining works.
20
/u/nonsequitrist explains perfectly how EA ruins games.
27
Redditors wax poetic over the food quality at Case Bonita
90
/u/snakesoup88 explains how to make a slinky actually go down all the steps instead of just the first two like all the times we tried as kids.
19
A husband finds ways to be happy with bedridden wife. Inspires fellow redditors.
59
Reddit user promises to stick 500 pictures of garlic to a car if it gets 50,000 upvotes. It does, and he delivers
139
u/mediaisdelicious offers a rhetorical strategy for conversing with people who treat every disagreement as an ideological battle of wits
19
Oldschool Kansas City Chiefs fan schools upstart punk and then elaborates on how the game has changed over the years.
279
Jeremy Lin finds support from unexpected places
29
User predicts a big twist on a Halloween episode months before it airs. Warning: BIG SPOILERS for the latest Brooklyn 99 episode.
0
Redditor perfectly sums why Trump isn't being hit with the same consequences as Harvey Weinstein in breathtaking fashion
55
Inside redditor details how one of the previously largest and most popular computer hardware and software retailers in Canada NCIX is dying/dead
7307
After Pres. Trump accuses the FBI, the Democratic Party and Russia of all working together to write dossier about his Russian ties, user makes short list of Obama's media controversies, including wearing a tan suit, bowing to a robot, and putting mustard on a burger.
22
u/kein-deutsch explains why amending executive order 13223 doesn't mean the US is preparing for war
18875
/u/rooster_86 satirizes HQC by singlehandedly populating the comment section on his own gif by creating original stories, reaction gifs, and even emulating /u/poem_for_your_sprog
21
CG_Ops provides a vivid image to the experience of riding a motorcycle
6
Redditor unwittingly works for a mafia gun warehouse
41
Redditor explains how to manage your social media accounts to increase your happiness without getting rid of them
17
Irishman explains how he became a supporter of the football club he now loves.
10
/u/verheyen has the answer to the ultimate question. What came first, the chicken or the egg?
10
/u/Hrodebert54 asks for fantasy football advice. Redditors choose to share their plans for the weekend instead.
124
/u/SunkenDota offers to prove that the author/sponsor of a Michigan bill built to outlaw community broadband couldn't pass high school math, and even paid for the tutor to take full courses.
332
Redditor discovers anti bullying hidden camera ad contains hired actors portrayed as real customers
88
/u/ed_merckx explains how the salary bonuses to management of failing retailer Sears will probably be used, the road Sears took to attempt recovery (as opposed to pure profiteering), and where that road may likely lead in the next couple years.
29
The first response to the first post on Reddit shares wisdom across the ages
15
User posts his friends instagram in the comments. Apple ends up commenting on his instagram requesting to use his photos.
48
Redditor shares a story on how a starving kid was able to get lunch.
95
Former Minor League Umpire explains just how hard it is to be a catcher
21
Redditor weighs in on BRIC economic policy during a soccer discussion
308
OP, Author John Green, Delivers by Helping A Redditor Propose At One Of His Events
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.
5 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.