Comments on: Myron Scholes: Nobel Prize Winner, Con Man And High Priest of Derivative Divinity

By: diego bergen

diego bergen — Tue, 10 Jan 2012 20:27:29 +0000

what frightens me more than the curious case of doc scholes…….
is what is going to happen when peeps start believing this website…..
with the understanding this website is not some NSA vulture net for nonzombies…ha ha

By: Jeff Miller

Jeff Miller — Sun, 01 Aug 2010 18:27:01 +0000

As I understand the Black-Scholes model, if a 747 is flying East to West from Chicago to Los Angles at 30,000 ft cruising at 450 mph, and at the precise moment that the jet crosses the Continental Divide, the engines quit, the probability that it will come down 50 mi East of the Divide is precisely the same as the probability that it will come down 50 mi West of the Divide. It does not take momentum, trends, or trading ranges into account.

An astutue trader can capitalize on this by selling calls at or near the top of a trading range and selling puts at or near the bottom of the range. In both cases, the options are over-priced.

By: paul cripps

paul cripps — Sat, 22 Aug 2009 19:50:03 +0000

your right these walking dead cunts have no shame

By: Tyr

Tyr — Wed, 03 Jun 2009 00:04:32 +0000

Shouldn’t that be FAKE nobel winner ? The economics prize isn’t awarded by the Nobel committee.

By: Rob

Rob — Fri, 29 May 2009 16:57:17 +0000

Sad there are still malevolent weirdos in the world that make the world worse and shabbier for the rest of us – i.e., you need to monitor and remove some of these comments – 8,9, 10.

Other than that, the explanation for Scholes and his cohorts came apparent to me when I saw them interviewed on a PBS special a few years ago — the guys are very, very arrogant, full of hubris, and self-centered.

By: aleke

aleke — Fri, 22 May 2009 19:07:24 +0000

What the fuck is 8 and 9 saying

By: Echelon

Echelon — Fri, 22 May 2009 08:33:41 +0000

capt. america, what is your secret? You’re a nigger (black person)?

By: captain ameirca

captain ameirca — Fri, 22 May 2009 02:53:08 +0000

this article needs some proofreading. unless acadenuc is a real word. and it may well be. evil nationalists such as myself and http://www.dictionary.com are ot known for our extensive vocabularies.

By: Feckeroller

Feckeroller — Fri, 22 May 2009 00:40:20 +0000

Why if international and American elite is so scheming and evil it gave us the plebs Viagra and first fuckable artificial vaginas in history. I mean realistically, our revolutionery representatives and independent thinkers what else are you asking for? Top models? Frankenstein 3d epoch knowledge them being Hep B, C infested adipose agglomerates of ‘brush tool’ bytery. Gorgeous Slavic sex women? Ames tried them and returned to NY.
13 yo boy-lovers? But who told you the elite are the bad guys in the ‘can I can I not’ have a 13 yo boy-lover’ practical disposition?

By: Anonymous Coward

Anonymous Coward — Fri, 22 May 2009 00:00:33 +0000

Oooooooooohh, the sound of rolling dice to me is music in the air

‘Cause I’m a gamblin’ boogeyman, although I don’t play fair.

It’s much more fun, I must confess, when lives are on the line;

Not mine of course, but yours old boy, well that’d be just fine.

By: Realist

Realist — Thu, 21 May 2009 22:36:57 +0000

Yeah, the quantitative economics of our day…

The model may be complete shit and always off target, but at least I use STATA. Also masks the fact that a good part of the derivative instruments market is faith-based.

But then again, our economics profession bursts with totally discredited people claiming the mike. Think Krugmann.

By: Tam

Tam — Thu, 21 May 2009 12:48:25 +0000

‘He’s stonewalling for a very simple, sleazy reason: his whole life depends on it.’

He sounds an asshole but, I have to admit, in his position I’d probably do the same. No one would exactly thank him for admitting he was wrong, would they?

By: OldSkeptic

OldSkeptic — Thu, 21 May 2009 09:32:30 +0000

The joke is, in 2004 I did a paper which, in passing, proved the Scholes-Black model was wrong. Want to know how long it took me to disprove it? 1 hour tops.

I also built another model which was much harder and far less precise, but had that great feature you normally want .. it actually worked.

Response to my (I think great) piece of work … absolutely nothing. Over a few beers I talked to some people that actually accepted what I said but, responded … “everyone uses it so we have to”.

By: KKK

KKK — Thu, 21 May 2009 08:23:58 +0000

I wonder what is thats lacking in a really good article like this?

May be it’s like… too late?

Where were you in 2004 Mr. Walker?

By: JimDate

JimDate — Thu, 21 May 2009 08:15:41 +0000

Shouldn’t it be “Nobel Prize winner”?

By: John

John — Thu, 21 May 2009 04:58:17 +0000

It certainly is the world’s fault for continuing to be suckers for this kind of crap. Fool me once, shame on me, etc.

What I don’t understand is how is it possible for these people to borrow so much money to invest it back into the financial markets? Who is stupid enough to lend them unsecured money? If your bank isn’t making loans to a corporation, why are you lending money to some black box hedge fun to buy that corporation’s stock?