The book provides a detailed account of the failure of Long Term Capital Management.

This failure was mainly attributed to the unwavering dependence on financial models and an absurdly high level of leverage.

No matter how intelligent or precise a model or strategy may be, excessive leverage is bound to lead to failure in the end.

The hedge fund boasted academic superstars and Nobel Prize winners, the so-called geniuses like Myron Scholes and Robert Merton, who were proponents of the Efficient Market Hypothesis (EMH).

Despite the fact that markets, time and again, have shown themselves to be inefficient and irrational, EMH, along with its models and assumptions, continues to be taught in finance courses.

Students are rarely informed about the risks inherent in such models and assumptions.

This book offers a highly interesting and thought-provoking read, and I wholeheartedly recommend it to anyone with an interest in this topic.

It provides valuable insights into the complex world of finance and the potential pitfalls that can occur when relying too heavily on certain models and strategies.

By reading this book, one can gain a better understanding of the importance of risk management and the need to constantly question and reevaluate our assumptions in the face of changing market conditions.

Overall, it is a must-read for anyone looking to deepen their knowledge of finance and investment.

A great pacy read if you're into capitalist disaster porn like me. They never seem to learn from their mistakes. It's truly astonishing how time and time again, the same patterns of greed and mismanagement play out in the capitalist world. The story unfolds with a sense of urgency, keeping you on the edge of your seat as you witness the inevitable downfall. It's like a train wreck that you can't look away from. But despite the chaos and destruction, there's also a certain allure to it. Maybe it's the schadenfreude of seeing those who have amassed great wealth and power brought low. Or perhaps it's the hope that one day, they'll finally get it right. Either way, this is a book that will keep you entertained and engaged from start to finish.

Gat Damn! This simple phrase can carry a lot of emotions. It might express frustration, anger, or even surprise. Sometimes, we use it when things don't go as planned or when we encounter something unexpected. It's a way to let out our feelings in a rather forceful way.

However, we should be careful when using such strong language. It might offend others or create a negative impression. In some situations, it's better to express our emotions in a more polite and civilized manner. But there are also times when a little bit of "Gat Damn" can help us release the pent-up energy and move on.

So, the next time you feel like saying "Gat Damn", think about the context and the people around you. Use it sparingly and appropriately, and don't let it become a habit that defines you. After all, there are many other ways to express ourselves and communicate with others.

It works until it doesn't.

It is truly hard to believe that after the spectacular fall of LTCM, John Meriwether had the audacity to go on and found a new firm, JWM Partners.

And, as if it were almost a foregone conclusion, this firm too blew up during the 2008 - 2009 downturn.

But here's what is truly surprising.

In 2010, he had the nerve to found a third firm, JM Advisors Management.

It seems that the concept of high-water marks, which are supposed to limit the risks and protect the investors, meant very little to him.

Despite the successive failures of his previous ventures, he continued to pursue his investment strategies, unfazed by the setbacks.

This story serves as a cautionary tale about the perils of overconfidence and the importance of learning from past mistakes in the world of finance.

It also makes one wonder about the forces that drive individuals like John Meriwether to keep trying, even in the face of repeated failures.