Anyone else getting the impression that the only reason the maths/statistics of the pricing models used by the industry work, is because everyone else is using them, and it turns into a self fulfilling prophecy?
It just seems like a "good buy" is labelled as one just because your model will tell you the same as everyone else's model, and along comes a Paulson, who can see the wood for the trees, disregards mathematical modelling in place of facts and logic and takes the lot.
Just an observation, I'm very willing to be proven wrong on this one.
