Скачать или смотреть The Biggest Trading Disaster in History | When Genius Failed (Audiobook)

💣 When Genius Failed: The Catastrophic Collapse of LTCM

This deep-dive explores the rise and collapse of Long-Term Capital Management, a hedge fund built by Nobel Prize winners whose models worked perfectly until real-world chaos struck. LTCM’s extreme leverage, dependence on convergence trades, and blind faith in mathematical certainty led to a $4.6 billion disaster that nearly broke the global financial system. We examine how the Russian default triggered a chain reaction, why liquidity disappears in a panic, and how crowded trades turn safe strategies into time bombs. This story reveals essential lessons about humility, risk, simplicity, and the limits of financial genius.

Understand why diversification fails during crises, how moral hazard grows when firms become too big to fail, and why modern markets still carry the same hidden dangers. This is a crucial lesson every investor must learn to avoid the mistakes that helped pave the way to the 2008 financial meltdown.

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0:00 The four-month collapse of a $4.6 billion fund
0:41 LTCM as a warning for modern markets
1:26 How LTCM’s shadow still influences today’s trading culture
3:52 The rise of the elite financial dream team
4:16 John Merryweather and bond arbitrage
4:49 Arbitrage and the dangers of extreme leverage
6:10 The Salomon scandal and the LTCM beginning
13:16 Recruiting Nobel laureates Merton and Scholes
14:16 The Black-Scholes model and its global impact
15:58 Raising capital through collective intelligence
16:56 Why no one questioned the genius
21:56 Early years of 40 percent returns



Disclaimer: This content is for educational and informational purposes only. It does not provide financial advice or investment recommendations. The material is an independent summary and personal interpretation, not a direct reproduction of the original book.

Important Note: Always consult a licensed financial advisor before making investment decisions. From an Islamic perspective, the majority of scholars consider conventional options trading and certain derivatives as impermissible (haram) due to gharar (uncertainty) and maysir (speculation). For religious guidance, please consult a qualified Islamic scholar or Shariah advisor.