LTCM Bailout, Crony Capitalism , Dougs Book

boddhisatva kbevans at panix.com
Sun Sep 27 19:58:21 PDT 1998


To whom,

Unfortunately we do have to care what people like LCTM do because when they lose, others do not necessarily win. If they stuck to futures and options in amounts that did not threaten the liquidity of a market, everything would be fine, but they actually dabble in things that can make liquidity disappear. When these monkeys have to liquidate so quickly they undermine markets and institutions (in the short term) which scares other capitalists into picking up their marbles and stopping the game. Under capitalism, everybody relies on those marbles.

peace



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