Our memory is short-lived.
Long Term Capital Management (LTCM) went bust in 1998.
Lehman Brothers a decade later in 2008.
LTCM had borrowed more than 50 times their own capital. The burden of the debt did them in.
Do you know Lehman was custodian to LTCM? How much did they borrow? Roughly 50 times their capital.
“We don’t learn” can we say?