Comments on: Who Needs Self Control? http://donklephant.com/2009/04/10/who-needs-self-control/ Big Teeth. Huge Ass. Surprisingly Reasonable. Tue, 14 Feb 2012 14:03:13 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Would You Eat the Marshmallow? » Coventry League - Blogentary http://donklephant.com/2009/04/10/who-needs-self-control/comment-page-1/#comment-464654 Would You Eat the Marshmallow? » Coventry League - Blogentary Sun, 17 May 2009 04:39:10 +0000 http://donklephant.com/?p=14407#comment-464654 <strong>Would You Eat the Marshmallow?...</strong> There is a resounding truth to the clich... Would You Eat the Marshmallow?…

There is a resounding truth to the clich…

]]> By: Jon Kay http://donklephant.com/2009/04/10/who-needs-self-control/comment-page-1/#comment-444299 Jon Kay Sat, 11 Apr 2009 19:16:46 +0000 http://donklephant.com/?p=14407#comment-444299 The problem with mortgage-backed securities isn't about greed - it's about having a pretty stupid model for how much one's worth. It amounts to a mass due diligence failure. Notice that one Warren Buffett, who didn't take off his thinking cap, refused to buy in because he thought they were overvalued. Now we have the problem that not so many high financial managers are willing to admit how wrong they were and think about revaluing MBS', which would take serious thinking and result in huge losses being acknowledged, but would also revive their ability to raise capital, a basic management responsibility. The problem with mortgage-backed securities isn’t about greed – it’s about having a pretty stupid model for how much one’s worth. It amounts to a mass due diligence failure. Notice that one Warren Buffett, who didn’t take off his thinking cap, refused to buy in because he thought they were overvalued.

Now we have the problem that not so many high financial managers are willing to admit how wrong they were and think about revaluing MBS’, which would take serious thinking and result in huge losses being acknowledged, but would also revive their ability to raise capital, a basic management responsibility.

]]>