central punters

Doug Henwood dhenwood at panix.com
Sun Oct 4 16:15:29 PDT 1998


Charles Brown wrote:


>Am I wrong in thinking that Greenspan's
>rationale is illogical ? How is it "risktaking"
>if when you fail, you don't lose ?
>Isn't the "risk" that you might lose ?

When you're really rich and really dangerously leveraged, your failure may take out lots of innocent people with you.

But people are losing big money on LTCM - less than they would have without the bailout for sure, but the banks, investors, and partners are all taking big hits. Not that they're worth a tear, but you can't say no one's losing anything.

Doug



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