1025200+ entries in 0.803s
rg: sure hopefully ill have more by
then
usagi: rg
thanks I am planning
to buy
them off you for my hot new killer app soon
rg: 8500 used
to be 1/2 week
rg: i usually dont sell
til i get
to around 8500
rg: okay usagi, i have a couple
thousand if you need em
usagi: Even after I pay out
the last 1100 coin contract remaining
usagi: You are getting agitated because I run an insurance company.
That's it. You need
to relax.
mircea_popescu: lesson number
two is
that you don't go by what you read in some wikipedia article about what happens irl.
mircea_popescu: lesson number one is
that if you
think you know more finance
than me you're an idiot.
mircea_popescu: please learn your fuckinglessons from
the pirate fiasco.
mircea_popescu: no, i just want
to show you
that you're irresponsible. you sell me
the insurance, i go put a block of 50mn shares of my own stock at half
the current implied price and i've
taken you out.
usagi: So you wanna short
them.
mircea_popescu: how much does it cost me
to buy 1800 of btc insurance agaisnt
their nav ?
mircea_popescu: so let's see, mpoe.etf is a fund
that's worth ~1800 btc atm ?
mircea_popescu: i'm in awe of
the irresponsible stuff
that passes for finance.
usagi: mircea_popescu;
That practice is known as "ratemaking" in
the insurance biz, mircea
mircea_popescu: how exactly do you evaluate
the volatility of a stock
that existed for less
than a year ?
usagi: happens all
the
time.
usagi: I could just as well sell smickles an option
to buy out his fund at a certain strike price.
usagi: mircea;
the owner of an options exchange should know better :p
copumpkin: so
the main benefit of selling investment insurance over investing directly is
that you don't need
to provide money, because
the risk profile is identical.
This lets you invest in a million different
things, and assume way more liability
than you're worth (ultimate leverage), which is only sane
to do if your investments are uncorrelated
usagi: It would indemnify your fund against short
term capital loss.
mircea_popescu: nav insurance ?! you can't possibly be offering
that ?!
usagi: We agree
to (for example) 100 payments of 5 bitcoins a week, in return for a (say) 400 BTC line of credit.
usagi: Smickles; I
think a much better form of insurance for a fund is nav insurance.
copumpkin: which is what allows you
to diversify like crazy
copumpkin: becasue you don't need
to pony up cash up front
smickles: usagi: alrigh
then,
thanks for
the primer :)
copumpkin: UNLESS you can do so all over
the place
copumpkin: it doesn't make sense for you
to accept less reward
than a direct investor
copumpkin: you're
taking on
the same risk as a lender/investor as an insurer
copumpkin: mircea_popescu:
that was a problem, but
the main issue for profit vs. risk assumed is diverfisifcation
usagi: If you want full coverage it would depend on
the amount you're covering
usagi: The flavor of
the month is
the shareholder protection agreement.
mircea_popescu: as far as i recall
the main problem was you couldn't insure against X person cause he could just buy
that insurance secretly and
then default
smickles: wikipedia on
traditional security investor protection " It protects investors in certain securities from financial harm if a broker-dealer fails. It does not protect against losses in
the securities markets, identity
theft, or other 3rd-party fraud."
copumpkin: but mostly, insurance is only really worth it if you have a really wide uncorrelated portfolio of insured
things
copumpkin: yeah, I realized I didn't want
to diversify coverage enough
to make it work, and
the legal issues with CDSes in particular were
too annoying
usagi: Some of which is priveledged
to me as
the guy who runs CPA
usagi: I act on
the information I have on my desk.
smickles: also, i should have coverage in
the sense of protecting my clients from myself
mircea_popescu: usagi lol, i'd expect
the exchange which lists mostly scam assets would be VERY expensive.
usagi: so I would have
to hunt you down, and
that could be expensive
usagi: some exchanges are cheaper
to insure
than others ^^
mircea_popescu: now
this is interesting. im curious how much mpex insurance costs.
smickles: also, it should cover my clients in
the even i can't perform my duties
to
them
usagi: But if
the exchange up and runs your agreement with individual companies does not change
smickles: i should have insurance
to refund my clients
usagi: it would depend on what you wanted protection from. if you wanted protection from something happening wrt glbse or mpex or protection on a particular asset
that would be different
smickles: suppose
the exchange up and runs
usagi: A shareholder protection agreement would protect investors in ss if
the broker/dealer relationship failed
usagi: I wouldn't say anything smickles does is small beans. You're well-respected around
these parts
smickles: i know s2cm is small beans, but we'll prolly want some kinde of insurance on
the funds we place
usagi: Thanks I was just panicking because I didn't know what
to do
rg: if you actually need
those LTC
gribble: Best bid: 10.763, Best ask: 10.7999, Bid-ask spread: 0.03690, Last
trade: 10.8, 24 hour volume: 40575, 24 hour low: 10.6, 24 hour high: 10.98888
smickles: hmm, so are ppt operators getting legal bs on
their asses?
mircea_popescu: i normally read newspapers from like
the late 2000s atm.
mircea_popescu: bitcoin is actually old enough
to be
treated as an extinct culture if one's so inclined.
bitfoo: I
thought you hated
the forums :)
bitfoo: why are you digging up old
threads anyway?
MrTiggr: (yu
think i have enuf energy
to maintain a mediawiki ppfft)
MrTiggr: i'll get
the admin onto it
smickles: aw, internal error on upload of
that pic
Chaang-Noi: wish i had more energy, i will ahve fun with
this
MrTiggr: give "his effigy" nice
tits
mircea_popescu: omg. MrTiggr i notice
that offensive site of yours contains libelous and defamatory content about me! I SUE YOU
smickles: mircea_popescu: but
they would ruin
the article by lying about you
mircea_popescu: you need
to enlist
the help of some people on
the forum.
smickles: heh, now
there's even bitcoin ed brokers
MrTiggr: if yud rather post copy
to me, ill happily put it up :D
gribble: Best bid: 10.75, Best ask: 10.8488, Bid-ask spread: 0.09880, Last
trade: 10.75, 24 hour volume: 36164, 24 hour low: 10.6, 24 hour high: 10.98888
MrTiggr: ^^ anyone else
too, have some fun;
take it out on a wiki, not
the forums :P
smickles: "Bitcoin is currently accepted in exchange for alpaca socks[2] and carrots[3], but you can also buy
toilet paper on MtGox."
MrTiggr: gotta chronicle
the lulz somehow
Chaang-Noi: im going
to wait until matthews bet
to do anything
smickles: and
the user can only affect
their account