From our e-book In Praise of Speculation!
When everyone is playing musical chairs and capital is flowing abundantly, you should play defense. On July 10, 2007, Chuck Prince, then CEO of Citigroup, said,
“When the music stops in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.” Citigroup's stock price soon thereafter collapsed. On November 2, 2007, Prince resigned.
The moral of the story: Don’t play musical chairs. There must be lower hanging fruits somewhere else. No?