LTCM - Hubris (or, moral hazard)

[Peter Kilander]

Doug:
>How was LTCM all so fundamentally different from other financial
>crises of the past? Sure, earlier plungers lacked access to the
>wondrous instruments today's hedge funds play with, but people have
>been doing a lot of damage by leveraging other people's money for
>centuries.

Are you refering to this?
"A debt default by Russia in August (to be discussed in Chapter 22)
sparked what the International Monetary Fund has called “a period of turmoil
in mature markets that is virtually without precedent in the absence of a
major inflationary or economic shock.”*"

The Case Study says:
"*See “World Economic Outlook and International Capital Markets: Interim
Assessment." Washington, D.C.: International Monetary Fund, December 1998,
p.36."