fail financial institutions. Two excerpts:
"The problem with becoming large relative to the market, is that you begin distorting the price signals of the market. If you have a large long position and the price starts to fall, it is easy to justify purchases, because your internal model indicates that it is cheap. But every model has weaknesses, consider the examples listed above. Anytime you get a large fraction of the market’s volume, you should stop, and re-evaluate. You’re probably doing something wrong.
"Markets by their nature invite diversity, and do not admit anyone to dominate them except under abnormal circumstances.
"What’s my point here? Twofold: one, rapid growth in financial institutions is rarely a good thing; it usually means that an error has been made. Two, there is a barrier in many financial decisions, where responsible parties are loath to cry foul until it is way past obvious, because the cost of being wrong is high."
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