The Magnetar Trade: How One Hedge Fund Helped Keep the Bubble Going

In late 2005, the booming U.S. housing market seemed to be slowing. The Federal Reserve had begun raising interest rates. Subprime mortgage company shares were falling. Investors began to balk at buying complex mortgage securities. The housing bubble, which had propelled a historic growth in home prices, seemed poised to deflate. And if it had, the great financial crisis of 2008, which produced the Great Recession of 2008-09, might have come sooner and been less severe. At just that moment, a few savvy financial engineers at a suburban Chicago hedge fund helped revive the Wall Street money machine, spawning billions of dollars of securities ultimately backed by home mortgages. When the crash came, nearly all of these securities became worthless, a loss of an estimated $40 billion paid by investors, the investment banks who helped bring them into the world, and, eventually, American taxpayers. Yet the hedge fund, named Magnetar for the super-magnetic field created by the last moments of a dying star, earned outsized returns in the year the financial crisis began. How Magnetar pulled this off is one of the untold stories of the meltdown. Only a small group of Wall Street insiders was privy to what became known as the Magnetar Trade. Nearly all of those approached by ProPublica declined to talk on the record, fearing their careers would be hurt if they spoke publicly. But interviews with participants, e-mails, thousands of pages of documents and details about the securities that until now have not been publicly disclosed shed light on an arcane, secretive corner of Wall Street.Technology and Industry

A Potpourri of Reason Maintenance Methods

We present novel methods to compute changes to materialized views in logic databases like those used by rule-based reasoners. Such reasoners have to address the problem of changing axioms in the presence of materializations of derived atoms. Existing approaches have drawbacks: some require to generate and evaluate large transformed programs that are in Datalog - while the source program is in Datalog and significantly smaller; some recompute the whole extension of a predicate even if only a small part of this extension is affected by the change. The methods presented in this article overcome these drawbacks and derive additional information useful also for explanation, at the price of an adaptation of the semi-naive forward chaining

Profiting From Purpose: Profiles of Success and Challenge in Eight Social Purpose Businesses

Offers an in-depth analysis of eight community-based human service and youth-serving nonprofit organizations that received assistance from Seedco's Nonprofit Venture Network to develop their capacity to launch social purpose businesses

A pragmatic module concept for Interlisp

This report describes a module concept for Interlisp which evolved during several years of implementation experience. Far from claiming any theoretical contribution to Lisp the concept is meant to be a practical tool which facilitates the design and implementation of Large software systems in Interlisp and which has established its usefulness during a long time of application

Margjnie Eisinger (Mrs. E) to Mr. Meredith (4 October 1962)

Signed by Margjnie Eisinger (Mrs. E)https://egrove.olemiss.edu/mercorr_pro/1932/thumbnail.jp