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I don't think you understand how CDOs are priced. The fact that CDOs were trading 35cents on the dollar is largely a part of default EXPECTATIONS resetting up.

I don't think you understand how CDOs are priced. The fact that CDOs were trading 35cents on the dollar is largely a part of default EXPECTATIONS resetting up. Smart contracts cannot expedite this process of resetting expectations. Ethereum (which, by the way, is too slow to run CDO pricing models) can only broadcast what the latest market price is. Ethereum helps price dissemination no more than a Bloomberg terminal can.

trevelyan 9y ago
> is largely a part of default EXPECTATIONS resetting up Yes, exactly! But take the next step and ask what sets EXPECTATIONS about the worth of a security in a smart-contract environment? It stops being generalized market fear and it starts being actual DATA about performance. > Ethereum (which, by the way, is too slow to run CDO pricing models) You don't run the monitoring software ON the blockchain (you could but it would be inefficient). You run that off-chain using blockchain analysis software.