RECHARGER WANTS TO KNOW — ARE WE ALL SUCKERS? Can we not tell the difference between an Academy Award and a Nobel Prize in economics? Reading an account of the book When Genius Failed on Underthecounter.com, gets us thinking: could we, with the right canine grooming, a serious suit from Barneys, and a strong bark, make a $2 million Christmas bonus despite having led investors into one of the biggest debacles in financial history?
Take Myron Scholes, half of the famed Black-Scholes duo, Nobel Prize winners who, in 1994, founded LONG-TERM CAPITAL MANAGEMENT (LTCM) A HEDGE FUND THAT WENT ON TO LOSE $4.6 BILLION IN LESS THAN FOUR MONTHS BEFORE IT WENT BUST. In 2005, Scholes was found guilty of setting up an illegal tax shelter to avoid paying taxes on company profits investments, and the IRS fined him and his partners more than $40 million.
Where’s Scholes now? Teaching economics at Stanford University.