> Interestingly enough it is by no means obvious that after the firm was
> recapitalized that
> as it liquidates its positions it won't be closed out as a profit.
> Evidently Warren Buffet was
> willing to recapitalize the firm along with Goldman Sachs so at least some
> very unnaive smart money thinks LTCM was doing something right.
Not really. I could buy out the bankrupted remains of a stupidly run company for very little, then having shed the company of its debts (via bankruptcy) make a profit.
By the way, I found it interesting that the week that Congress is passing a bankruptcy law for working class people, they bail out the rich.
-- Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu