Summer vacations linked to last week's market crash

A merger arbitrage trader, who requested anonymity, recounted an incident where "One guy I know was going to see the field hockey at the Olympics, on the Eurostar. He went into the tunnel and he had no connection right when contagion was spreading. Eurostar’s WiFi or lack of it probably cost him millions of dollars.”

Matt Levine remarked on this phenomenon: “In August, every trading desk is staffed by junior people who don’t know what they’re doing” seems to be a reasonably robust fact of behavioral finance.”

The consensus suggests that while travel is important, staying reachable during vacations is crucial for those managing significant financial responsibilities.

The case of Archegos Capital's collapse further illustrates this point. Their counterparties were left holding substantial losses, with Credit Suisse losing $5.5 billion while Jefferies managed to contain their losses. During this period, Jefferies' CEO was vacationing in Turks and Caicos and reportedly issued directives from a swim-up bar.

Summer vacations also impact healthcare negatively; mortality rates rise when experienced medical staff are replaced by less experienced personnel during holiday periods.

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