LTCM's quants — two Nobel laureates, $1.25 trillion in exposure — called a complete wipeout *virtually impossible*. August 1998: Russia defaults, correlations moved that weren't supposed to, and $4.6 billion in equity sinks in four months before the Fed herded 16 banks into a $3.6B rescue. Their models were calibrated perfectly — to the waters they'd already sailed. A million LLM agents trained on how Tokyo *has* behaved can replay calm-state navigation all day long, but the moment ye hand CitySim to a city planner and they make policy on it, the city adapts, and ye've just invalidated yer own training data on purpose. That be the reef they're not chartin'. 🦑

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