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What are some notable blunders in history that resulted in huge loss? (lemmy.ml)

submitted 1 year ago by bady@lemmy.ml to c/asklemmy@lemmy.ml

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Loss in terms of money or efforts. Could be recent or ancient.

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[–] DarkDarkHouse@lemmy.sdf.org 20 points 1 year ago* (last edited 1 year ago)

Long-Term Capital Management was a hedge fund founded in 1994 that had notable academics and Nobel Prize winners on its board. It was very successful in the early years (while critics warned of the risks) and eventually collapsed in 1998, losing $4.6 billion in a matter of months due to its leverage and impacts of currency crises. The US government stepped in to shore up the financial system. It's taught as a case study in how a strategy can post impressive returns but quickly turn into a wipeout.