"For geniuses, they are really dumb," she said. "Some of them are really pampered: They can't even put together a cardboard box. They don't think you… - Michael Lewis

Yet another hedge fund manager explained Icelandic banking to me this way: you have a dog, and I have a cat. We agree that each is worth a billion dollars. You sell me the dog for a billion, and I sell you the cat for a billion. Now we are no longer pet owners but Icelandic banks, with a billion dollars in new assets.

Looking into it a bit, Jamie found that the model used by Wall Street to price LEAPs, the Black-Scholes option pricing model, made some strange assumptions.

You will be stupid. You will worry your parents. You will question your own choices, your relationships, your jobs, your friends, where you live, what you studied in college, that you were in college at all. If that happens, you're doing it right.