The 2008 Economic Crisis and The Rise of Bitcoin

The economic collapse of 2008 was initiated by the introduction of mortgage-backed securities, a financial tool comprised of bundles of individual mortgages. Despite being perceived as stable, these securities proved immensely profitable for banks, which issued both mortgages and bonds. Consequently, they became integral to the investment portfolios of various financial organizations, such as pension…

The Technology Inside the Machine

Table of Contents Key Takeaways AI architectures like neural networks are the backbone enabling modern AI models and applications. Architectures have rapidly evolved from simple algorithms to complex deep learning. Key architectures highlighted include transformers (GPT, BERT) for NLP, CNNs for computer vision, RNNs for sequential data, etc. Each has unique capabilities. Factors like autoregression,…

Betting Against the House: The 2008 Market Collapse and Bond Shorting

Table of Contents Key Takeaways The 2008 housing market crash was caused by loose lending standards, growth of subprime mortgages, securitization, credit rating agencies, and a massive bubble in home prices that diverged from fundamentals. Low interest rates from the Federal Reserve after 2001 inadvertently fueled increased borrowing and speculation, contributing to the housing bubble.…