Quotes About Long-Term Capital Management

The fall of Circuit City and another famous failure, the hedge fund Long-Term Capital Management, illustrate why business, when practised in the absence of wealth secrets, produces fire sales more often than fortunes.

Another recent event is the almost-instant bankruptcy, in 1998, of a financial investment company (hedge fund) called Long-Term Capital Management (LTCM), which used the methods and risk expertise of two "Nobel economists," who were called "geniuses" but were in fact using phony, bell curve–style mathematics while managing to convince themselves that it was great science and thus turning the entire financial establishment into suckers.