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Awesome write up. Couldn't agree more. 

My first takeaway from the LTCM wikipedia article is that a certain former governor was closely associated with LTCM and was forced out of Goldman by Henry Paulson after the crisis in 1998.

So to summarize, a guy takes on too much leverage on European sovereign debt and his firm crashes and burns some 13 years after he was closely associated with a firm that took on too much leverage on Russian bonds and collapsed. This isn't a management or internal control problem, the guy was convinced Europe was going to be bailed out out just like LTCM. Or he thought he could open such a large position that his company would be bailed out. This way he can't lose. 

The problem is Europe may need approximately 1-3 trillion in bailouts, where the 3 billion LTCM received is a drop in the ocean compared to Europe's debt problems. The Greek write off triggered MF's fall. Another problem was company wasn't considered too big to fail so he was shut down...Hopefully this isn't black swan #3.

The second takeaway from the wikipedia article on LTCM is that Lehman doled out up 100 million toward the LTCM bailout yet was allowed to fail because they were not too big too fail as many saw it. It was nice to see the government remembered Lehman's participation in LTCM's rescue while Bear Stears who refused to participate was bailed out shortly after Lehman failed. Inequality doesn't just exist among people, it exists among wall st. firms. When will the 99% of businesses start marching?

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