Economic Rocket Ballistics

[Terrance]

Richard Romeo wrote:
> 
> I'm reading an interesting book on the rise and fall of Long Term Capital
> Management, called "When Genius Failed". Essentially, a huge hedge fund
> almost brought the whole financial system down because of its extensive use
> of high-level trades using derivatives and arbitrage. LTMC relied upon
> mathematical models to track price flux on many types of things, bonds,
> mortgages, and eventually even equities. Wall Street (like those rocket
> scientists we all know and love) came to  believe in these academics to come
> up with mathematical models to explain how markets work, kinda like how
> objects like cannonballs move in flight.  Another type of pornography of
> flight, I suppose.

Unlike pointy they did get the Nobel. One year you win the nobel prize
for your formula and the next year you are formula. 

I know for sure what the markets are going to do. I know for sure. I
don't even need a model or a formula, unless of course, you want to know
when or if you ask me about coffee. Short coffee, it will keep going
down forever.