"I’ve seen pages of equations and computer code by quants dedicated to trying to figure out how to optimize a crack addict’s NINJA loan in a 360 dimensional hilbert space. Not to optimize it so that it gets paid off, ... but how to squeeze as much juice out of it before the expected default probability spins out of control, leaving the bank with the home it had started with (that was worth a fortune, because home prices keep rising!)."

- posted by vcmc @  4/02/2009 06:24:00 PM