was up 55 percent. The next year, the S&P 500 fell again, by 22.1 percent, and yet Scion was up again: 16 percent. The next year, 2003, the stock market finally turned
“I think I’ve been in the top five percent of my age cohort all my life in understanding the power of incentives, and all my life I’ve underestimated it. And never a year passes but I get some surprise that pushes my limit a little farther.
Note: how true, how true. you get what you incent, both good and bad.
If Morgan Stanley failed, however, its share in their fund wound up as an asset in a bankruptcy proceeding. “I’m thinking, We’ve got the world by the fucking balls and the company we work for is going bankrupt?”
What are the odds that people will make smart decisions about money if they don’t need to make smart decisions—if they can get rich making dumb decisions? The incentives on Wall Street were all wrong; they’re still all wrong.