The Expanding Menu of Horrors

'UBS concluded that “mathematical models that traders use to calculate prices in the 2 trillion dollar market for collateralized debt obligations simply don’t work anymore. In its commentary, UBS admitted that integral ‘correlation’ models which represent the odds of one default potentially infecting another, and the very fabric of pricing for many of these derivative securities, now show a nearly 100% chance of contagion.' -- That means the models are working just fine thank you