When Genius Failed: The Rise and Fall of Long Term Capital Management

Roger Lowenstein

Last read August 31, 2019

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Highlights

4 highlights.

and no market, no matter how liquid, can accommodate all potential sellers when the day of reckoning comes.

Page: 106

Markets can remain irrational longer than you can remain solvent.

Page: 123

long-term thinking is a luxury not always available to the highly leveraged; they may not survive that long.

Page: 151

The next time a Merton proposes an elegant model to manage risks and foretell odds, the next time a computer with a perfect memory of the past is said to quantify risks in the future, investors should run—and quickly—the other way.

Page: 235