Trend Following With Michael Covel

On today’s episode of Trend Following Radio Michael Covel interviews Jim Rickards. Jim was front and center during the 1998 LTCM blow-up. He was a partner and general counsel for Long Term Capital Management. Following their blowup, he was principal negotiator in the 1998 bailout of LTCM by the Federal Reserve. He has had a bird’s eye view of some of the most interesting events in the economy over the last 20 years. Michael and Jim dive right into the sequence of events that lead to the devaluation of the Thai Baht in May of 1997. Jim then goes into the chronology of events that took place leading to the fall of Long Term Capital Management. He makes clear that LTCM had some of the brightest brains in finance working for them at the time, including Nobel Prize winners and a vast number of PhD’s from MIT, Harvard, Stanford, Yale, etc. Jim summarizes the events prompting Russia to default on their debt which let loose a sequence of events leading to LTCM losing four billion dollars in one month. Wall Street car