Comments on: EXCERPT - The Casino Scene

By: Bent Gabelgaard

Bent Gabelgaard — Mon, 03 May 2010 13:13:50 +0000

A chilling read. Too bad Larry did not include the London view when it unfolded that the risk assessment on the CDO structured products sold from Lehman and Wall Street in general was less than perfect.

However, the book is great on describing the respect which exists between trading professionals - and the lack of it when non-professionals tries to do a professional’s job. It is nice to have this story exposed to a larger audience.

If Larry&Larry&Mike should ever find themselves in a great team needing commodity/energy trading expertise, give me a shout.

By: Kevin Kelly

Kevin Kelly — Tue, 23 Mar 2010 16:13:47 +0000

Just finished reading Colossal Failure. It was a great read. Everyone should pick up a copy.

By: Rob P

Rob P — Wed, 18 Nov 2009 15:28:21 +0000

Oh My Larry M. He is a gambler!!! even on the Golf course where there would be no TURN no matter how long he played…LOL..

By: Hot Links: Stiglitz, Whitney, Durden & Mussolini « The Reformed Broker

Hot Links: Stiglitz, Whitney, Durden & Mussolini « The Reformed Broker — Sat, 22 Aug 2009 11:35:15 +0000

My boy Lawrence McDonald forwarded an excerpt from his Lehman collapse book, this one’s the Casino Scene from “A Colossal Failure of Common Sense.”

By: Richard Sweet

Richard Sweet — Sun, 16 Aug 2009 19:35:32 +0000

I thought the casino scene exposed a major flaw in McCarth’s approach to risk. McCarthy was esentially “doubling down” until he won. Every bet he made (unless he was card counting) had a negative expectation. His strategy is the classic trap for compulsive gamblers. McCarthy’s low point was minus $165,000. What was his loss limit? A million? Ten million? In general, if one has a modest goal, the probability of winning increases as the loss limit increases, but with a percentage going to the house, it is always less than goal divided by the amount at risk.

McCarthy says “You’ve got to be there for the turn. Because it always turns.” That’s poppycock. It’s likely to turn. Although the likelyhood increases with the amount risked; it’s never a certainty.

By: angwembe

angwembe — Sun, 16 Aug 2009 11:44:13 +0000

This book is an eye opener. Let us hope that history does not repeat it self.

By: Lawrence G. McDonald » EXCERPT - The Day Delta Airlines Went Bust

Lawrence G. McDonald » EXCERPT - The Day Delta Airlines Went Bust — Thu, 13 Aug 2009 22:27:36 +0000

[...] Read the Blackjack Scene. [...]

By: larry underwood

larry underwood — Mon, 10 Aug 2009 22:50:16 +0000

That’s why I no longer hang out in Vegas. When every pit boss in town knows you by name, you know you’re in trouble. It doesn’t matter if you know exactly how to play every hand, if the cards run against you, you’re dead. Luckily for me, I’d stop after losing a couple a grand per sitting…

By: @dotsthots (twitter)

@dotsthots (twitter) — Thu, 06 Aug 2009 08:29:15 +0000

Reads like a movie trailer — see your work in the theaters one day soon? Guess I need to get your book…

By: Santos

Santos — Wed, 05 Aug 2009 14:09:43 +0000

Nice teaser … you had me hooked. Will check out the book. Cheers.

By: @schazd

@schazd — Wed, 05 Aug 2009 02:15:37 +0000

I’ve begun this book and it is a good read so far. It’s amazing to get an inside perspective on the genesis of the financial collapse that goes back to the Clinton years. It’s amazing that stuff like this can and probably continues to go on.

By: @chartingstock Twitter

@chartingstock Twitter — Sat, 25 Jul 2009 18:48:26 +0000

Should Be A Great Read, Keep Up The Good Work.
From: @chartingstock