January 2012
Intermediate to advanced
384 pages
8h 36m
English
Content preview from Tail Risk Killers: How Math, Indeterminacy, and Hubris Distort MarketsBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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CHAPTER 23The Fed Is a Two-Faced Mutant Pig
The problem with risk is that we manage it with what we know best, even when events outside our experience happen. For this reason, investors work under the assumption that the future is not appreciably different from the past. When radically different conditions arise, all bets are off. The Federal Reserve manages risk with what it knows best—easy liquidity. This will create a greater problem than it resolves.
THE PROBLEM IS INSOLVENCY, NOT ILLIQUIDITY
Insolvency is the real tail risk now, not illiquidity.
The Policy Premise
The prices for bank assets became “artificially” depressed by banks and other investors trying to unload their holdings in an illiquid market. As a result, they no longer reflect ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.