(h/t Barry Ritholtz)
Long Term Capital Management (LTCM) almost failed catastrophically in 1998 and had to be bailed out. It's collapse should've IMPRINTED into the minds of the MOTU that it's financial models could be drastically wrong but it didn't. Roger Lowenstein described the fall of LTCM in his book "When Genius Failed" and he summarized the findings in a NYT article and shows us how LTCM was a precursor for today's financial meltdown. In fact, the CEO of the late Bear Stearns, James E. Cayne, was an early investor in LTCM.
Friday, November 21, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment