When Markets Turn

摘要

George soros, one of the original hedge-fund managers, believes that every boom in the making is tested. Often the potential bubble succumbs and is forgotten. If it survives, the market's misplaced faith is redoubled. That, Mr Soros says, is when things become dangerous.rnThe test for the credit boom was Long-Term Capital Management (ltcm), a super-brainy hedge fund created by John Meriwether and his team from Salomon Brothers, along with Robert Merton and Myron Scholes, the pair of Nobel laureates who had worked with Fischer Black on options pricing. The markets should have learnt from ltcm's collapse, but they were too busy making money.