Thursday, August 16, 2007

First comes the pain; then come the jokes

From the Financial Times:

10 reasons Titanic was actually a subprime RMBS

  1. The downside was not immediately apparent
  2. It went underwater rapidly despite assurances it was un-sinkable
  3. Only a few wealthy people got out in time
  4. The structure appeared iron-clad
  5. Nobody really understood the risk
  6. The disaster happened overnight London time
  7. Nobody spent any time monitoring the risk
  8. People spent a lot trying to lift it out of the water
  9. People who actually made money were not in original deal
  10. Despite the disaster, people still went on other ships