Unreal Blog

Here is an article defending (to some extent) the insane salary expectations of the elite bankers and traders. And quants. This piece will appear in my regular column in Wilmott Magazine.

Read the rest of "In Our Defense"

The last post in this series, this one exposes the extreme cases both in allowing and in denying bonuses, and their implications. Both the options imply our acceptance of certain economic idea. And, as with most things in life, it is not quite clear which is right, once you think long enough about it. A happy and stable middle ground is what we should seek and find.

Read the rest of "Bonus Plans of Mice and Men – VI"

If you generate profit, don’t you deserve a share of it? Profit generation and increasing shareholder value — these are the hallmarks of top talent in our capitalistic world view now. What is good for the shareholder is certainly good for the talent as well.

Read the rest of "Bonus Plans of Mice and Men – V"

Another common argument is that bonuses are necessary to retail the so-called “talent.” Are they?

Read the rest of "Bonus Plans of Mice and Men – IV"

If hard work does not entitle us to fat bonuses, perhaps our “talent” does? This is the third in the series of posts based on an upcoming column of mine in the Wilmott Magazine.

Read the rest of "Bonus Plans of Mice and Men – III"

The second in the series of posts based on an upcoming column of mine in the Wilmott Magazine, here is the common argument about hard work and the perceived entitlements.

Read the rest of "Bonus Plans of Mice and Men – II"

This is another series of posts based on an upcoming column of mine in the Wilmott Magazine. In this series, I will examine at the arguments for and against huge bonuses and golden parachutes. The first in the series, this post merely sets the stage for the next half a dozen. The starting point of this series is the public resignation letter by Jake DeSantis, ex-EVP at AIG, and his reasons for believing in the fairness of the huge bonus packages. And my arguments against them, with the personal suspicion that my views are perhaps more a case of sour grapes than of moral high horse.

Read the rest of "Bonus Plans of Mice and Men – I"

The lessons we need to learn and a sneak preview of the upcoming changes that are sure to impact those of us in the financial industry. Here is the last excerpt from my next column to appear in the Wilmott Magazine in March.

Read the rest of "House of Cards"

How free is free market? Less than you think. Here is why. Another excerpt from my next column to appear in the Wilmott Magazine.

Read the rest of "Free Market Hypocrisy"

Are quants to blame for the financial mess our banks are in now? I don’t think so. Here is another excerpt from my next column to appear in the Wilmott Magazine.

Read the rest of "Quant Culprits"

The paradigms employed for managing credit and market risks proved inadequate during the credit crunch and the ensuing meltdown. Here is another excerpt from my next column to appear in the Wilmott Magazine.

Read the rest of "Where Credit is Due"

Ever wonder why those airfares are quick to climb, but slow to land? One word — hedging. Here is another excerpt from my next column to appear in the Wilmott Magazine.

Read the rest of "Hedging Dilemma"

More on the systemic reasons behind the financial meltdown. Here is another excerpt from my next column to appear in the Wilmott Magazine.

Read the rest of "Risky Business"

Was corporate greed to blame for the financial debacle we are in? Perhaps. Here is an excerpt from my next column to appear in the Wilmott Magazine.

Read the rest of "Ambition vs. Greed"

This article appeared in the Wilmott Magazine in Jan 2009, and talks not quite about the chaos and uncertainty of the last few months in finance industry can be summarized in two words. It is more about the physics concepts bearing the same names, and how they can be applied to the turmoil in the financial and economic world.

Read the rest of "Chaos and Uncertainty"