Hedge fund fallout & Other Merry Weather

Carl Remick cremick at rlmnet.com
Tue Sep 29 13:23:24 PDT 1998


Re Louis's FT quote: "'Hurricane Long-Term blew through our markets with such force that many were left homeless...'"

Just returned from several days on the Florida panhandle, where I was sealed off from all news not literally meteorological in nature, as well as LBO list access. In catching up just now, was surprised to review 400 accumulated LBO posts & find relatively little discussion of the LTCM bailout. When the NY Times, for God's sake, starts talking about the dangers of creeping "crony capitalism" in the nation, there's a definite shift in the wind zeitgeistwise. I think Will Sutton in that Observer piece that was posted here nailed the implications of the LTCM bailout exactly: "Last week, free market economic theory died." There's a big difference between the run-of-the-mill hypocrisy that normally oils our economic workings and the *naked* hypocrisy seen in the Fed's orchestration of the LTCM bailout while we urge the rest of the world to heed market strictures. PR-wise, this is much worse than, say, the RTC bailout -- with thrifts, at least, you could *claim* to be protecting grass-roots financial interests to some extent; it's hard to make the "jes' lookin' out for the folks" argument with the LTCM crowd. Also on this topic, re Jason's: " 'Long Term Capital' - what a truly IRONIC name for a hedge fund!!!!" To me, the real irony is in the last name: *Management.* What buffoons!

P.S. Re another thread that ran during my absence: My superficial impression is that *very few* of those living in the Pensacola-Tallahassee area get more leftish in orientation as they get older.

Carl Remick



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