Contrary to common supposition, there is nothing wrong with being illiquid—unless you are vulnerable to being forced to sell in a hurry. But Long-Term, being highly leveraged, was in that very spot—for, as we have seen, leveraged investors can accumulate losses with terrifying speed. Ignoring this oft-proven verity, Haghani struck a gargantuan trade with borrowed money. He was under stress due to the ill health of his father, who died later that year, and he felt pressure due to the deteriorating landscape in bond arbitrage. Still, there is no explaining the size of the Royal Dutch/Shell
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