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My Manhattan Project: How I helped build the bomb that blew up Wall Street.

260 点作者 gaika大约 16 年前

13 条评论

madmanslitany大约 16 年前
This is probably the first substantial article I've seen on the lead-up to the recession written by someone who's "one of us." It seems like much of his career activity took place a decade ago, but much of what he relates still rings true for computer scientists and software engineers on Wall Street today (excluding those that go straight into trading, banking, etc., of which there are a lot).<p>Until the recession hit, the odds of you making well over six figures in three or four years without even being that extraordinary were pretty high if you worked for one of the big five investment banks, and if you went to work for a hedge fund, you could be making much, much more than that without having to become a "business person."<p>It's more demanding psychologically (ironically, sometimes what I think is most poisonous to technologists' morale on Wall Street is the occasionally subservient and submissive attitude of some of their peers towards the traders and bankers) than working for a normal software company is, and your absolute maximum monetary return is still the highest with a startup, but in a way, it's an interesting middle ground between the stability of a regular software job and the potential payoff of a startup (just looking at the money here, personal fulfillment is a completely different discussion).<p>And although the whole "second-class citizen" thing does sting, it is interesting to see how much softer the criticism of the article's subject is on the New Yorker site compared to the vitriol usually hurled at an actual banker or trader; in fact, a few months ago, in the midst of the worst part of market volatility, one of the technology directors where I work was stopped for talking on a cell while driving; the cop asked him where he worked, and after telling him, our director implied that he was only let off without a ticket because he was in tech and not a banker.
epall大约 16 年前
&#62; Now that I was spending more time on the floor, I wondered why the men’s room always stank. Then one afternoon at three, when I was in there taking a leak, I discovered the hideous truth. Traders had a contest. Coming in at eight, they never left their desks all day, eating and drinking while working. Then, at three o’clock, they marched into the men’s room and stood at the wall opposite the urinals. Dropping their pants, they bet $100 on who could train his stream the longest on the urinals across the lavatory. As their hydraulic pressure waned, the three traders waddled, pants at their ankles, across the floor, desperately trying to keep their pee on target. This is what $2 million of bonus can do to grown men.
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biohacker42大约 16 年前
<i>...confessed to him that I had never studied finance, and I had only taken one course in computers</i><p>This lack of formal qualifications seems common on wall street, perhaps this isn't surprising.<p>I know I didn't want to work as a programmer for a finance company because I'd prefer to be a first class citizen in a software company even for much less money.<p>Perhaps wall street only gets second tier engineers, scientists and mathematicians?<p>I know of one specific case, where yet another person without formal training made it high up as a programmer at a well known large institution who's name I'll withhold.<p>This person was very well compensated for doing the kind of horrific wheel reinventing that only smart people without formal training can do.<p>Needless to say all kinds of wacky hi jinks ensued over that person's years at wall street.<p>In one instance he like all other programmers was forbidden to use malloc. And everything was on the stack and of size 512 - EVERYTHING. Who made that decision? Why the financial managers obviously!<p>And I'm thinking that a big part of wall street's downfall is all that under qualified personnel, there primarily for the money.<p>I think very few quants and people in their positions ever had the confidence and power to stand up to the finance guys.<p>I think if finance firms went to the trouble of hiring people who have better options they might not be in so much trouble.<p>Then again if you're gambling with other people's money and your compensation only has upside, no downside with risk - nothing would have prevented the crash.
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mustpax大约 16 年前
Great read.<p>I really appreciate it when posters take the trouble to link to the printout version. So much more readable, this is bliss. Thanks!
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DLWormwood大约 16 年前
The crisis in a nutshell...<p><pre><code> "Oh, people who have defaulted on loans in the past. That’s why they’re called subprime," he informed me. "But if they defaulted on loans at 8, how can they ever pay back a loan at 16 percent?" I asked. "It doesn’t matter," he confided. "As long as they pay for a while. With all that excess spread, we can make a ton. If they pay for three years, they will cure their credit and re-fi at a lower rate." That never happened. </code></pre> While there are those out there who would look at the writer like a gun manufacturer whose product ends up in the hands of criminals, it's really all the fault of the people who made this greedy risk, <i>practically knowing</i> that defaults were going to happen anyways, that really deserve the blame in this mess...
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mattmaroon大约 16 年前
You can't blame yourself for what inevitably happened. It's the people who put only best case scenario numbers into every variable in the risk modeling. And even if you removed that from the equation, you were just providing a product banks wanted and if you hadn't someone else would. The disaster would still have occurred.
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dschobel大约 16 年前
<i>I asked him how the bonds worked.<p>“You put chicken into the grinder”—he laughed with that infectious Wall Street black humor—“and out comes sirloin.”</i><p>I'm speechless.
wallflower大约 16 年前
" I used to go to the trading floor and watch my software in use amid the sea of screens. A programmer doesn’t admire his creation so much for what it does but for how it does it. This stuff was beautiful and elegant."
sonpo大约 16 年前
A great read. It makes me think about the software I write on a daily basis and how it's effects may be felt much further than the end user I am providing it directly to. Interestingly, I currently write software (admittedly much less complex) for a mortgage company, so the article hit home.<p>Regarding the author - should he be "blamed" or feel ashamed of his work somehow? I don't think so, and I'm glad to see that he doesn't think so, either. The software he was commissioned to create worked and performed well for it's intended purpose.<p>What if a software engineer lands a job working for a defense contractor to create programs for missiles, bombs, or other weapons? Are they to blame for the world war? Of course not, but that seems to be what some people are thinking. [I'm not sure if that comparison is fair, but it makes sense to me.] Could they have turned down the job based on principal? Sure, but sometimes a job can be very tough to come by. Besides, who would think a simple programming job could possibly lead to such catastrophe, especially in the business world? Maybe that's a take away, or at least something to think about when looking for your next gig.
comatose_kid大约 16 年前
"Once upon a time, this [securitization] seemed like a very good idea, and it might well again, provided banks don’t resume writing mortgages to people who can’t afford them."<p>While the banks shouldn't escape blame, didn't this securitization facilitate shoveling the risk onto the buyers of these 'bonds', encouraging sloppy lending practices?
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spoiledtechie大约 16 年前
Epic Story. Good read.
zby大约 16 年前
As a redemption he should write that again and publish as an Open Source library - so that everyone could analyze what is going on.
perplexes大约 16 年前
Broken.
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