Monday, August 20, 2007

Flight to Safety

Dazel from the Berkshire Hathaway Shareholders board pointed out something that hasn't recieved much press- the recent dramatic fall in treasury yields, especially short-term. See this link.

Meanwhile in the world of computer-model trading,

"Wednesday is the type of day people will remember in quant-land for a very long time," said Mr. Rothman, a University of Chicago Ph.D. who ran a quantitative fund before joining Lehman Brothers. "Events that models only predicted would happen once in 10,000 years happened every day for three days."

More "black swans"!

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