I finally found a role model

[financeguy]

Oct. 17 (Bloomberg) -- Andrew Lahde, the hedge-fund manager who quit after posting an 870 percent gain last year, said farewell to clients in a letter that thanks stupid traders for making him rich and ends with a plea to legalize marijuana.

Lahde, head of Santa Monica, California-based Lahde Capital Management LLC, told investors last month he was returning their cash because the risk of using credit derivatives -- his means of betting on the falling value of bonds and loans, including subprime mortgages -- was too risky given the weakness of the banks he was trading with.

``I was in this game for money,'' Lahde, 37, wrote in a two-page letter today in which he said he had come to hate the hedge-fund business. ``The low-hanging fruit, i.e. idiots whose parents paid for prep school, Yale and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government.

``All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other sides of my trades. God Bless America.''

Lahde, who managed about $80 million, told clients he'll be content to invest his own money, rather than taking cash from wealthy individuals and institutions and trying to amass a fortune worth hundreds of millions or even billions of dollars.

``I do not understand the legacy thing,'' he wrote. ``Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.''

Request for Soros

He said he'd spend his time repairing his health ``as well as my entire life -- where I had to compete for spaces at universities, and graduate schools, jobs and assets under management -- with those who had all the advantages (rich parents) that I did not.''

http://www.bloomberg.com/apps/news?pid=20601087&sid=aVUE96d.HKyw&refer=home

 

[purpleoscar]

This guy has got to be the most cynical person I've ever heard.

He also suggested that billionaire George Soros sponsor a forum in which ``great minds'' would come together to create a new system of government, as the current system ``is clearly broken.''

Anybody who thinks we need "great minds" to solve the problem probably believes in authoritarian societies. If George Soros is involved then it would probably look like this:

I think there will always be scammers and robbers out there as long as there is ignorance. What is the saying? "There's a sucker born every minute."

"He added, ``The evil female plant -- marijuana. It gets you high, it makes you laugh, it does not produce a hangover. Unlike alcohol, it does not result in bar fights or wife beating. So, why is this innocuous plant illegal? Is it a gateway drug? No, that would be alcohol, which is so heavily advertised in this country.''

Lahde said the only reason marijuana remains illegal is because ``Corporate America, which owns Congress, would rather sell you Paxil, Zoloft, Xanax and other addictive drugs, than allow you to grow a plant in your home without some of the profits going into their coffers.''

I agree with the idea that people can get addicted to prescription drugs and companies like making money on over prescription of drugs, but legalising marijuana has it's own problems with addiction and driving under the influence:

InfoFacts - Marijuana

 

[A_Wanderer]

Marijuana is one of the safest drugs in existence. if one isn't smoking every day it isn't problematic and on the scale of social harm it pales in comparison to alcohol.

You attack Soros for being authoritarian but support a state punishing individuals for controlling what substances go into their own bodies and what they do with their own minds.

 

[melon]

Sounds like my kind of guy.

He also suggested that billionaire George Soros sponsor a forum in which ``great minds'' would come together to create a new system of government, as the current system ``is clearly broken.''

Anybody who thinks we need "great minds" to solve the problem probably believes in authoritarian societies. If George Soros is involved then it would probably look like this:

Even you know that this isn't correct, considering you went to great lengths to post a list of capitalist economists with widely divergent philosophies. I find it highly doubtful that he's looking for a successor to capitalism, per se, but, instead, a successor to American "Reaganomics," to oversimplify it. I'd say that the discussion is overdue too. For modern society to have this constant "end of history" attitude behind it is destructive. We don't know everything, and to expect a single variant of capitalism to be perfect and work from the beginning to the end of time is as unfeasible as expecting the Roman Empire to last forever. It had a great run while it lasted.

 

[financeguy]

I barely noticed the legalise marijuana stuff. I have little interest in this subject. On balance I think I'm probably in favour of legalising it, provided it's not extended to hard drugs like cocaine and heroin.

I was much more interested in his views on the financial services industry, and the lack of meritocracy therein in an industry that shouts the loudest about being, well, a meritocracy.

Also, the guy f***ed the system from within, made his fortune, and got out with his integrity intact. This is something I admire.

In my own small way, I will continue to do my little trades as an after-hours activity, do more research, and get better and better at my little sideline.

And I will succeed, though probably not to his level.

I will do it on my terms, as Lahde did it on his terms.

 

[ntalwar]

I'm not sure I'm convinced that he planned to quit at this time. It's likely he just got flooded with redemption requests like the other hedge funds. The hedge fund industry is in a crisis of its own at the moment.

 

[corianderstem]

I thought you were going to say it was me.

i'm very disappointed not to be your new role model.

 

[purpleoscar]

Sounds like my kind of guy.



Even you know that this isn't correct, considering you went to great lengths to post a list of capitalist economists with widely divergent philosophies. I find it highly doubtful that he's looking for a successor to capitalism, per se, but, instead, a successor to American "Reaganomics," to oversimplify it. I'd say that the discussion is overdue too. For modern society to have this constant "end of history" attitude behind it is destructive. We don't know everything, and to expect a single variant of capitalism to be perfect and work from the beginning to the end of time is as unfeasible as expecting the Roman Empire to last forever. It had a great run while it lasted.

I was making a joke above, but I have a deep seeded mistrust in elite and "great minds". Even Einstein wrote a book about Socialism that was woefully inaccurate about the subject. Soros also supports Moveon.org and that organization has been known to pay people to stage protests.

Soros to me is another rich guy that feels guilty that he's rich and feels the envy of others and now wants to be perceived as helping the "little guy" in order to improve his appearance. This is much like Bill Gates who doesn't want to be hated anymore so he gets into charity.

How do you feel about Keynesian economics vs. Monetarism?

What should be done about NAFTA if it's not wholly satisfactory?

These are two areas that Reagan was talking about. I feel that Reagan failed at influencing economists since nowadays Keynesian economics and demand side economics is still quite popular even amongst conservatives.

 

[Varitek]

I like this dude...is he single?

 

[yolland]

I'm having trouble understanding what makes this man "admirable," especially since he surely knew perfectly well what the broader consequences of the collapse he was betting on would be. Lucrative and clever and schadenfroh yes, but admirable?

 

[No spoken words]

We can all join him and move to Galt's gulch.

 

[financeguy]

I'm having trouble understanding what makes this man "admirable," especially since he surely knew perfectly well what the broader consequences of the collapse he was betting on would be. Lucrative and clever and schadenfroh yes, but admirable?

Well, ok. What kind of things do you admire?

 

[No spoken words]

We can all join him and move to Galt's gulch.

We can?

 

[yolland]

Well, ok. What kind of things do you admire?

Well, lots of things, but not that kind of spiteful vengefulness. Why didn't he instead blow the whistle on these "people stupid enough to take the other sides of my trades" from the beginning? I get that he's clever and made a fortune f**cking the system, I just don't see that as "admirable."

 

[financeguy]

Well, lots of things, but not that kind of spiteful vengefulness. Why didn't he instead blow the whistle on these "people stupid enough to take the other sides of my trades" from the beginning? I get that he's clever and made a fortune f**cking the system, I just don't see that as "admirable."

Spiteful vengefulness? Every trade has a winner and a loser. I bet you some of the traders on the other side of his trades actually laughed at his outburst and respect him for it. They didn't enjoy losing the money, granted, but none of these guys are on the breadline.

 

[yolland]

They're certainly not, no.

 

[Vincent Vega]

He said he'd spend his time repairing his health ''as well as my entire life -- where I had to compete for spaces at universities, and graduate schools, jobs and assets under management -- with those who had all the advantages (rich parents) that I did not.''

Well, this sentence at least leaves the impression that he is celebrating his own little victory over all those people he wanted to make look like a fool for all those years. His own little revenge on all the people that had everything handed down while he had to struggle.

 

[UberBeaver]

We can all join him and move to Galt's gulch.

No one in Galt's Patch had a sense of humor. This guy would hate it there.

 

[No spoken words]

No one in Galt's Patch had a sense of humor. This guy would hate it there.

Galt's patch? Did the audibook skip a few times?

 

[UberBeaver]

Galt's patch? Did the audibook skip a few times?

You'd fit right in with those humorless, self impressed fuckers.

 

[No spoken words]

You'd fit right in with those humorless, self impressed fuckers.