Damn you, but the boys at Goldman Sachs are probably on it, right now. Take a pi... | Hacker News

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		winestock on Aug 6, 2011 \| parent \| context \| favorite \| on: United States loses AAA credit rating from S&P Damn you, but the boys at Goldman Sachs are probably on it, right now. Take a pile of T-bills. Siphon off the income from them into a pie. Cut the pie into tranches. The first tranch or two are guaranteed to be AAA. Just look at the math that the quants derived... We can all lipsync this tune.

ericd on Aug 6, 2011 | [–]

Heh if only they could pretend that the performance of one T-Bill could be assumed to be uncorrelated to that of another T-Bill...

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