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David X. Li's Gaussian copula function

David X. Li's Gaussian copula function
"Li's formula, known as a Gaussian copula function, looked like an unambiguously positive breakthrough, a piece of financial technology that allowed hugely complex risks to be modeled with more ease and accuracy than ever before. With his brilliant spark of mathematical legerdemain, Li made it possible for traders to sell vast quantities of new securities, expanding financial markets to unimaginable levels." - Felix Salmon

Chicago School of Economics

"By allowing money to flow in the direction of less impedance the invisible hand of the free market effectively balances the economy."
Chicago School of Economics

"The Chicago School bears the blame for providing a seeming intellectual foundation for the idea that markets are self-adjusting and the best role for government is to do nothing." - Joseph Stiglitz

The financial engineers of profit-driven innovation agree that mathematical models of risk simply failed to take into account all of the variables.

According to expert consensus risk models proved myopic, too simple-minded.

The financial engineers focused on variables concerned with expected returns and the default risk of financial instruments.

Mathematical models failed to take into account the reality that financial instruments in the final analysis must be based on actual assets that exist in reality as objects within the biosphere.

The variables neglected include an out of control debt spiral based on never ending growth within a closed finite biological system experiencing catastrophic environmental degradation world wide at a rapidly increasing pace.

"Today's Wall Street fabricators of avant-garde financial instruments are actually called "financial engineers." They got their training in "labs" much like Dr. Frankenstein's, located places like Wharton, Princeton, Harvard and Berkeley which is based upon the laissez-faire economic ideology of Milton Friedman and the Chicago School of Economics. While the old regime, the Reagan-Bush counterrevolution, has lived off the heady vapors of the FIRE sector, it has left in its wake a deindustrialized nation, full of super-exploited immigrants and millions of families whose earnings have suffered steady erosion. Two wage-earners, working longer hours, are now needed to (barely) sustain a standard of living once earned by one. And that doesn't count the melting away of health insurance, pensions and other forms of protection against the vicissitudes of the free market or natural calamities." - Steve Fraser 01/08

"In its latest push to compel confidence the authorities are placing enormous pressure on the Financial Accounting Standards Board to suspend "mark-to-market" accounting. Basically, this means that the banks will not have to account for the actual value of the assets on their books but can claim instead that they are worth whatever they paid for them.The Treasury, the Federal Reserve and the SEC all seem to view propping up stock prices as a critical part of their mission - indeed, the Federal Reserve sometimes seems more concerned than the average Wall Street trader with the market's day-to-day movements." - Michael Lewis & David Einhorn 01/03/08

"Neoliberal (neocon in America) economists in the last three decades have denied the possibility of a replay of the worldwide destructiveness of the Great Depression that followed the collapse of the speculative bubble created by unfettered US financial markets of the 'Roaring Twenties'. They fooled themselves into thinking that false prosperity built on debt could be sustainable with monetary indulgence. Now history is repeating itself, this time with a new, more lethal virus that has infested deregulated global financial markets with 'innovative' debt securitization, structured finance and maverick banking operations flooded with excess liquidity released by accommodative condemns. A massive structure of phantom wealth was built on the quicksand of debt manipulation." - Henry C. K. Liu 11/15/08

"Until the last year, the biggest growth industry within the US had been the financial sector, producing profits of over $500 billion as late as 2006. In other words, the US has replaced working for a living with the manipulation of money and the extraction of interest, either by lending it or by brokering the lending and investment by foreigners. In order to enrich themselves, the financiers, with a lot of help from the government, created the merger/buyout bubble of the 1980s, the dot.com bubble of the 1990s, and the housing/equity/hedge fund/derivative bubble of the 2000s." - Richard C. Cook 03/02/09

"Over the years bank services and bank risks migrated outside of the regulatory safety net. Wall Street securities firms, for example, developed the commercial paper market, which replaced much of banks' short-term corporate lending. Investment banks like Merrill Lynch were never subject to the same kind of safety and soundness regulation as commercial banks. Newer market participants, like hedge funds, were not subject to any regulation at all. Even regulated banks were gradually allowed to own securities and insurance businesses within a holding incorporation structure, and they were allowed to hold highly-risky speculative positions in off-balance-sheet "special purpose" entities." - Mark Jickling

Jon Stevens Corzine after earning a MBA from the Chicago School of Economics went on to become a CEO of Goldman Sachs, a US Senator and a Governor of New Jersey. In 1999 he made $400 million in an initial public offering through Goldman Sachs. Later $1.2 billion disappeared like magic from his investment fim IM Global in 2011.


"Corzine's Crime of the Century"

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This website defines a new perspective with which to engage reality to which its author adheres. The author feels that the falsification of reality outside personal experience has created a populace unable to discern propaganda from reality and that this has been done purposefully by an international corporate cartel through their agents who wish to foist a corrupt version of reality on the human race. Religious intolerance occurs when any group refuses to tolerate religious practices, religious beliefs or persons due to their philosophical ideology. This web site marks the founding of a system of philosophy named The Truth of the Way of Life - a rational gnostic mystery religion based on reason which requires no leap of faith, accepts no tithes, has no supreme leader, no church buildings and in which each and every individual is encouraged to develop a personal relation with the Creator and Sustainer through the pursuit of the knowledge of reality in the hope of curing the spiritual corruption that has enveloped the human spirit. The tenets of The Truth of the Way of Life are spelled out in detail on this web site by the author. Violent acts against individuals due to their religious beliefs in America is considered a "hate crime."

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American social mores and values have declined precipitously over the last century as the corrupt international cartel has garnered more and more power. This power rests in the ability to deceive the populace in general through corporate media by pressing emotional buttons which have been preprogrammed into the population through prior corporate media psychological operations. The results have been the destruction of the family and the destruction of social structures that do not adhere to the corrupt international elites vision of a perfect world. Through distraction and coercion the direction of thought of the bulk of the population has been directed toward solutions proposed by the corrupt international elite that further consolidates their power and which further their purposes.

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