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Translation: the probability of another financial crisis is close to one. When I consulted at MS, the quants set the probability of a default at one of their co
by ChristianMarks 13y ago
Translation: the probability of another financial crisis is close to one. When I consulted at MS, the quants set the probability of a default at one of their counterparties to be one event in 250 years. Perhaps we witnessed a very low probability event. Or their models and estimates were wrong.
- harshreality 13y agoI would love to see their prior probability distribution for that, and how it was obtained.