LTCM part Deux

bathrobe · Mar 27, 2008

John Meriwether the most well known of the "Geniuses" who lost Billions at LTCM, was allowed to manage money again

and is down a mere 28% on the year so far on his bond fund. I also think he got the gig at LTCM for being a Solomon Brothers Bond Wizard.

Why cant he or Bear hedge funds or Goldman hedge funds with PHD's and MBA's running them make a consistent return?

bathrobe · Mar 27, 2008

I read a thread here a while ago debating college and the era of the street smart kid from Brooklyn making it in the market and the consensus was a degree is necessary.

I went to college and learned nothing that helps me have a better return than Goldman's Alpha Fund.

Bogan7 · Mar 27, 2008

Quote from bathrobe:

John Meriwether the most well known of the "Geniuses" who lost Billions at LTCM, was allowed to manage money again and is down a mere 28% on the year so far on his bond fund. I also think he got the gig at LTCM for being a Solomon Brothers Bond Wizard.

Why cant he or Bear hedge funds or Goldman hedge funds with PHD's and MBA's running them make a consistent return?

Sorry mate but your an idiot without the slightest idea about what you are talking about. That bloke has made more in a day than you are likely to make in your lifetime.

bathrobe · Mar 27, 2008

Quote from Bogan7:

Sorry mate but your an idiot without the slightest idea about what you are talking about. That bloke has made more in a day than you are likely to make in your lifetime.

Great for him he also lost more than I will in a lifetime and the money was not his, I play with my own money.

The fact remains, without getting personal with you as you have with me, he will be remembered for losing Billioins.

MandelbrotSet · Mar 27, 2008

Quote from bathrobe:

Great for him he also lost more than I will in a lifetime and the money was not his, I play with my own money.

The fact remains, without getting personal with you as you have with me, he will be remembered for losing Billioins.

Good point!

These are all part of the group that brought you junk bonds, sub-prime mortgages and hedge funds that blow-up spectacularly ... gamblers chasing a dollar ...

Bogan7 · Mar 27, 2008

Quote from MandelbrotSet:

Good point!

These are all part of the group that brought you junk bonds, sub-prime mortgages and hedge funds that blow-up spectacularly ... gamblers chasing a dollar ...

So Junk bonds and subprime mortgages have been of no benefit? The problem has not been with the products themselves but how they on occassion has been abused.

Junk bonds and subprime have and continue to offer companys and people access to the financial market that had for so long be denied them and many and benefited greatly from this. I could go on but it would probably be a waste of time.

DeeDeeTwo · Mar 27, 2008

Quote from Bogan7:

The problem has not been with the products themselves but how they on occassion has been abused.

Wall Street has had a culture of exploitation or "abuse" for 200 years.

How have you not noticed?

brocklanders · Mar 27, 2008

Yes he lost 28%, so what? It is a hit but it is not a fatal blow as long as his fund is liquid. At least he did right by LTCM clients who invested in JWM Partners by setting a high water mark to recoup past losses before fees were collected.

bathrobe · Mar 27, 2008

Quote from Bogan7:

Sorry mate but your an idiot without the slightest idea about what you are talking about. That bloke has made more in a day than you are likely to make in your lifetime.

I think there is a tremendous problem when a fund manager with monumental losses gets a new job running money so quickly: Brian Hunter (Amaranth) is already co-manager of a new fund, and Meriwether had a 500Million fund 6 months after he lost 400 million dollars a day for several months :eek: :eek: :eek: Who cares what he did prior to this or how many Nobel prizes LTCM had between them; if you are a hedge fund manager and you have the audicity to lose 400 million a day and stick with the position for several months, you should be finished in the business.

Directly to Bogan07: Your above quote where you explain the difference between Meriwether and myself in pure dollars and cents is what is wrong with the current state of the worlds "do anything to get rich mentality". His bloated fraudulent salary means only that, no more no less. Your statement says volumes.

Bogan7 · Mar 27, 2008

Quote from DeeDeeTwo:

Wall Street has had a culture of exploitation or "abuse" for 200 years.

How have you not noticed?

Mate you have missed the point these products have helped many companies and individuals in the real world that lacked had in many cases access to the capital markets. This has provided real jobs in the cases of the junk bonds. Subprime loans have given many the chance at a homeloan they had been denied.

People like you with your witty little statements like the one above that you find trolling sites like this just show your ignorance while attempting to look clever.