Thursday 3 July 2008

A Marxist view of losing money in market crashes

This is from an old Howard Davies speech:

One sidelight on the Wall Street crash which has some relevance today is the story of the Shenandoah Corporation launched by Goldman Sachs. It was what we today would call a leveraged investment trust. It crashed dramatically. One of the investors who lost his money in Shenandoah was Groucho Marx who observed ‘I lost $250,000. I would have lost more, but that was all I had’.

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