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What if Black-Scholes is wrong?
Comments
i'm neither an economist nor a mathematician but as soon as i read the "black-scholes" equation i knew it was wrong as it's based on unrealistic value assumptions. and ommits a simple factor which is the value of the currency. value of currency is subject to two major factors, forex markets and inflation (and i'm not even here mentioning the political risk: devaluation!!!)
I could write here pages and pages, tearing the equation down, but it's so simple, it's boring. Thinking that some half-witted high flyers have created 24 quadrillions of intangible assets based on assumptions is laughable, or clever! get ready people, we are on for a big loss!!! when the tree comes down, the big boys will still be on top cause all they need do is burn the balance sheet and tell you they've lost your money cause after all they didn't really mean it when they conned you by saying it was a risk-free investment and that it's your fault if you were gullible enough to believe that risk free investments actually exist!



