Zombie Economics Quotes

“In retrospect, the strategy pursued by LTCM can be seen as a variant on the ancient “martingale” betting strategy. As Slate writer (and mathematician and novelist) Jordan Ellenberg explained, the strategy can be illustrated by betting on a coin:   Bet 100 bucks on heads. If you win, you walk away $100 richer. If you lose, no problem; on the next flip, bet $200 on heads, and if you win this time, take your $100 profit and quit. If you lose, you’re down $300 on the day; so you double down again and bet $400. The coin can’t come up tails forever! Eventually, you’ve got to win your $100 back. (Ellenberg 2008)”
― John Quiggin, Zombie Economics: How Dead Ideas Still Walk Among Us