Felix Salmon on LSS

After reading Felix Salmon explanation of Leveraged Super Senior debt via Brad DeLong I have arrived at an understanding of a meta-theory of high finance.

High Finance consists of inventing jargon terms in order to obfuscate a financial transaction to such an extent that its true nature is disguised. When corporations are only measured by their short term performance as measured by standardized accounting practices the simplest way to improve results is to massage the figures for short term gain, pushing out hidden costs and concealling risks.

Super Senior, sounds like its the best eh? Actually its the toxic sub-prime sludge.

The sub-prime meltdown has been a topic of speculation amongst bloggers for three years now. Perhaps the warnings from the same bloggers about 'peak oil' are also on target.