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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 375.93-1.8%Nov 14 4:00 PM EST
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To: carranza2 who wrote (76571)7/20/2011 10:12:25 AM
From: Gemlaoshi  Read Replies (2) of 217792
 
C2, Interesting comments re:Bwater

I see Bwater eventually going the way of LTCM.

Interesting that Dalio sees the source of his success as his "rules based trading" expertise. Of course LTCM was also very much a rules based trader, until the rules no longer worked. The major weakness of all such systems is that they are by nature an extrapolation of the past.

I found his comments interesting until his logic started breaking down:

1. He believes in the Law of the Jungle; survival of the fittest
2. Bwater contributed to the demise of Lehman Brothers by withdrawing funds (billions) at the critical time for Lehman liquidity
3. Dalio does his tour of the Treasury and White House and is appalled that the gov't would let Lehman collapse

It seems to me that the outcome should have been a confirmation of #1. Lehman made some highly leveraged bad bets, got squeezed, and failed to survive.

As it should be!

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