Comments on: My Pet Peeve http://organizationsandmarkets.com/2007/12/28/my-pet-peeve/ Economics of organizations, strategy, entrepreneurship, innovation, and more Sun, 20 Jul 2008 05:22:40 +0000 http://wordpress.org/?v=MU By: Steve Phelan http://organizationsandmarkets.com/2007/12/28/my-pet-peeve/#comment-66734 Steve Phelan Sat, 29 Dec 2007 20:24:45 +0000 http://organizationsandmarkets.com/2007/12/28/my-pet-peeve/#comment-66734 Thanks, Warren! Thanks, Warren!

]]> By: Warren Miller http://organizationsandmarkets.com/2007/12/28/my-pet-peeve/#comment-66723 Warren Miller Sat, 29 Dec 2007 18:17:42 +0000 http://organizationsandmarkets.com/2007/12/28/my-pet-peeve/#comment-66723 A nit, Steve: the correct phrase is "systematic risk," not "systemic risk." A nit, Steve: the correct phrase is “systematic risk,” not “systemic risk.”

]]> By: Tom S. http://organizationsandmarkets.com/2007/12/28/my-pet-peeve/#comment-66669 Tom S. Sat, 29 Dec 2007 06:42:17 +0000 http://organizationsandmarkets.com/2007/12/28/my-pet-peeve/#comment-66669 I doubt DeLong is picking on industry men. Read through to the link DeLong provided in your quote. In the end he uses a quote by Warren Buffett who is picking on academics. I doubt DeLong is picking on industry men. Read through to the link DeLong provided in your quote. In the end he uses a quote by Warren Buffett who is picking on academics.

]]> By: Steve Phelan http://organizationsandmarkets.com/2007/12/28/my-pet-peeve/#comment-66661 Steve Phelan Sat, 29 Dec 2007 05:52:36 +0000 http://organizationsandmarkets.com/2007/12/28/my-pet-peeve/#comment-66661 Does it make it more plausible? ;-) Does it make it more plausible? ;-)

]]> By: michael webster http://organizationsandmarkets.com/2007/12/28/my-pet-peeve/#comment-66660 michael webster Sat, 29 Dec 2007 05:33:01 +0000 http://organizationsandmarkets.com/2007/12/28/my-pet-peeve/#comment-66660 The exact quote used by De Long was: " By contrast, portfolio diversification did not work for bonds, which were all "subject to the same hazards" which were "not reduced by increasing the number of different bonds held." CDO's were said to be different because according to Felix Salmon, the overcollateralization afforded by the aggregation of sub prime mortgages meant at least some tranches could be A rated. Edgar Smith wasn't talking about this type of diversification at all. The exact quote used by De Long was: ” By contrast, portfolio diversification did not work for bonds, which were all “subject to the same hazards” which were “not reduced by increasing the number of different bonds held.”

CDO’s were said to be different because according to Felix Salmon, the overcollateralization afforded by the aggregation of sub prime mortgages meant at least some tranches could be A rated.

Edgar Smith wasn’t talking about this type of diversification at all.

]]>