How was the hedge fund LTCM formed? Why was the hedge fund created in the first place? Shortly after John Meriwether left Salomon Brothers, he sought to create a new fund. In When Genius Failed, Roger Lowenstein delves into the emergence of LTCM, its unique convergence strategy, and the high-risk, high-reward nature of its approach. Continue reading to learn about the early years of LTCM.
What was the 1997 Asian economic crisis? How did the crisis affect LTCM? Several Asian countries experienced a currency collapse in 1997. The crisis eventually found its way to the US, affecting several hedge funds, including LTCM. Here’s how the 1997 Asian economic crisis led to the collapse of LTCM.
What was the 1998 Russian financial crisis? How was LTCM affected by the crisis? The collapse of the Russian ruble in August and September 1998 exacerbated the impending liquidity crisis in global financial markets, intensifying the fund’s difficulties. Russia defaulted on its financial obligations, sending shockwaves throughout global financial markets. Find out how the 1998 Russian financial crisis contributed to LTCM’s downfall.
Why did the hedge fund LTCM collapse? What economic crises contributed to the downturn? The year 1997 was the beginning of the end for LTCM, as it succumbed to the enormous risks it had taken on, along with the combined pressures of the 1997 Asian financial crisis and the 1998 Russian financial crisis. We’ll explore how unexpected volatility began to sink the fund. Check out the events that led to this hedge fund collapse.
What does a speculative bubble look like? What are some examples of speculative bubbles? Speculative bubble examples can be found in US stock, housing, and bond markets throughout history. If you know what a speculative bubble looks like, you can help prevent stock market crashes in the future. Learn what a speculative bubble is from these three examples.
What was the “Free Britney” movement? How did the movement help the musician escape her conservatorship? The “Free Britney” movement (better known as #FreeBritney) was launched by fans who expressed concern about the pop star Britney Spears being held under a conservatorship in her 30s. In her memoir, The Woman in Me, Spears opens up about the movement after learning about it in rehab. Learn more about the Free Britney movement and how it helped expose the terrors of the conservatorship.
What caused the dotcom boom and bust? How does the theory of speculative bubbles explain what happened? The dotcom boom and bust was caused by feedback loops in which investors responded to increasing prices by pushing prices even higher. To understand how this happened, we need to take a closer look at each factor that influenced how investors speculated. Continue reading to learn what caused the dotcom bubble to form and then burst in the early 2000s.
What’s the relationship between speculation and the stock market crash? How did the media influence investors? In both 1929 and 1987, speculation and the stock market crash were deeply intertwined. A look at media coverage at the time shows how speculation set the stage for each crash. Let’s consider how speculative bubbles influenced by the media led to major stock market crashes in history.
What caused the economic growth of the 1920s? In what ways was this similar to the 1950s economic boom? The economic growth of the 1920s and the 1950s economic boom was caused by “new era” economics, a mindset where investors began to believe that market growth would continue for a long period of time due to cultural changes. To understand why these booms happened, you need to understand this mindset. Learn what caused the economic growth of the 1920s and 1950s and how new-era thinking contributed.
Why did the Republican Party choose Abraham Lincoln as a presidential candidate? Why was he motivated to sign the Emancipation Proclamation? What’s his legacy today? In And There Was Light: Abraham Lincoln and the American Struggle, Jon Meacham breaks down the myths and legends that surround Abraham Lincoln. He argues that Lincoln had good intentions and accomplished great things but was still as flawed and prone to mistakes as anyone else. Continue reading for an overview of this New York Times bestseller by a Pulitzer Prize winner.