Only human – Paul Krugman Blog –

From the comments–this should be in the “classic” category:

Paul: Could you get a hold of one of the “legacy securities” (aka toxic assets) and in a column or blog unwrap it in front of our eyes? What would we find? A tenth of an acre of Philippine swamp leveraged 30 to one and bearing interest ratioed to the DOW average as a function of the Indonesian GDP squared on January 1 2011 insured to 85% value by AIG financial, London given the logarithmic function of the 1998 dollar exchange rate amalgamated to the square of market price on sale or negatively functioned to default. Oh, look, in the same package : a put option on the World Series Cracker Jack sales in 2011 minus futures bets amounting to .00056 % of the original contract price of ARM mortgage on the preceding parcel of swampland pro rated inversely to the Baby Doll sum of prizes in a cross-sectional sampling of the aforesaid Cracker Jack sales, adjusted for inflationary points beginning at the offering of this security . Wow! This package is Triple A rated!! Oh, what’s this? A Swap on .0000089 of purchased logging rights in the uplands of Tristan de Cunha held by Singapore Bank Ltd–guaranteed 40% return in denominated Yuan subject to exchange reverse fips marked to the Transylvanian droulbe at time of sale.

— rabbit hole

via Only human – Paul Krugman Blog –

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