Modeled Behavior (who if you aren’t reading you really should be) comments on the Shadow Banking interview I did earlier in the week.
Note that these are, in effect, the same thing – someone makes a business spinning a tail risk motor, and if it explodes everyone else has to pick up the pieces, be they financial contagion or disease outbreaks. Capitalism as the art of perfecting making someone else eat your costs.
Charles Davi explains the OTC derivatives business. Very worthwhile.
The Hurt Locker is one of the best movies I’ve seen in a while, though it is very overwhelming. (After seeing it late at night, instead of wanting to head out I just wanted to be alone for a while.)
My friend Ed, the lucky bastard, saw the Jesus f***ing Lizard Wednesday; he saw this:
I’m on twitter if you are interested in following that. I don’t post that much so it won’t overwhelm your feed, if that is a concern.