The China Vortex

Chris Masse’s excellent MidasOracle.org, which focuses mainly on prediction markets, has a posting called Journalism Failures – Big Time.

The Midas Oracle article links to an article by Risk magazine nominating Societe Generale as the equity derivatives house of the year.

(You better check out the link soon before the magazine’s management takes it down.)

In case you haven’t heard, Societe Generale has been having some problems lately. We’re talking about US$7B losses because of a rogue trader, which even with the dollar falling, is not chump change.

I couldn’t invent this kind of shit even if I wanted to, and I’m a pretty creative guy.

Now if this is the kind of advice the western risk experts dish out, kind of makes you wonder, doesn’t it?

I’d say that the Chinese way of the CEO making all the risky calls himself according to his or his mistress’s mood at the moment is more reliable, and maybe, even more scientific…

The emperor has no clothes.

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