AI Trading & Lehman Brothers?

WOW! I posted this over 12 years ago. Talk about being spot on the money! I hate to do this but I’m going to quote myself here:
I firmly believe that data mining, AI, and machine learning trading will accelerate over the years. Who knows, maybe my little model will move markets one day! 🙂
As far as the trend in AI goes, it’s really getting started now. AI is being adopted by the next tier of companies. We’re out of the “innovator” and now “early adopter” phases. We’re starting to move into the “early majority” phase, and this is where it gets good.
Adoption Phase Cycle
I’ll write more on this late but I want to go on a tangent here. I’m cracking up. LEH-FUCKING-MAN BROTHERS. WOW. It’s amazing what I can find in my archives back then. Remember Lehman Brothers? They blew the fuck up because of bad bets in the MBS markets.
They used to be so ‘bad ass’ but then they kept too much risk on their balance sheet and the Fed refused to bail them out, they set off the financial crisis. I posted a link to an article a few days later where Richard (Dick) Fuld got punched in the face at the gym. A 150 year company that was destroyed in a matter of days because everyone was greedy.
LEH filed for bankruptcy on September 15, 2008, a little over a year later from my AI post. It’s mind boogling, it had $639 Billion in assets with $619 Billion in debt. The charts are damn right frightening but the good news is that AI is still here.
Lehman Bros. (LEH) Daily Chart prior to collapse
Lehman Bros. (LEH) Weekly Chart prior to collapse