Feb

3

 Trading is hard with small kids around. I remember when I was trading copper. I'm long, and my actress daughter gets a bloody nose (of course she dramatizes it, she's a born actress). I forget the trade in copper, stop the bleeding….and….go back to see a 45,000 loss in copper. It would have been cheaper to med-evac her to the hospital.

Victor Niederhoffer reminisces:

Twenty five years ago I lost half my wealth between the first and second games of a racquetball game with Reuben Gonzales.

Craig Mee writes:

Shocking…It reminds me of a local interest rate trader, heavily
short, who went for a "quick" haircut, next door to the exchange in
Sydney…. BOOM. Reserve bank unexpected rate move …house wiped out. 

An anonymous contributor writes: 

Speaking of rapid destruction of wealth:
 

They [ed.: i.e. the French] had then learned how easy it is to issue it; how
difficult it is to check its over issue; how seductively it leads to the
absorption of the means of the workingmen and men of small fortunes;
how heavily it falls on all those living on fixed incomes, salaries or
wages; how securely it creates on the ruins of the prosperity of all men
of meager means a class of debauched speculators, the most injurious
class that a nation can harbor,—more injurious, indeed, than
professional criminals whom the law recognizes and can throttle; how it
stimulates overproduction at first and leaves every industry flaccid
afterward; how it breaks down thrift and develops political and social
immorality. All this France had been thoroughly taught by experience.

Everything was enormously inflated in price except the wages of labor.
As manufacturers had closed, wages had fallen, until all that kept them
up seemed to be the fact that so many laborers were drafted off into the
army. From this state of things came grievous wrong and gross fraud.

*- Andrew Dickson White, “Fiat Money Inflation in France”, How it Came, What it Brought and How it Ended*
 


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3 Comments so far

  1. admin on February 4, 2011 10:41 am

    Andre Wallin on February 4, 2011 8:23 am

    The book by White is available here:

    http://mises.org/books/inflationinfrance.pdf

  2. kora on February 5, 2011 12:57 am

    “Twenty five years ago I lost half my wealth between the first and second games of a racquetball game with Reuben Gonzales.” -new sentence

    vs

    “I lost half my wealth between the first and second games of a racquetball game with Reuben Gonzales” - old sentence

    costed one sleepless night of depression for an ardent follower of dailyspec reader from India .. it would be nice , henceforth, if such a costly mistake of not putting the timeline is avioded ..( i’ve no idea of the timelines of Reuben Gonzales career , to gauge this hasn’t happened in the last week or last month .).

  3. kora on February 6, 2011 10:46 am

    “45,000 loss in copper” on a born actress -> looks like a good investment ! , congrats Larry on the Oscar nomination

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