Greenspan on U.S. foreign balance

[Bradford DeLong]

>----- Original Message -----
>From: "Bradford DeLong" <jbdelong at uclink.berkeley.edu>
>
>>  >
>>  >That's a very big if. Who knew, or more accurately cared, that
>Enron
>>  >ran a derivatives book larger than most banks?
>>
>>  The Treasury, the SEC, and the Federal Reserve care. I don't
>know
>>  whether they knew. I hope they did...
>>
>>  Brad DeLong
>>
>================
>Well hell, you were one of the brighter blokes at Treasury for a
>while, did you know?
>Ian

Back in 1993-1994 we knew that derivative books were still relatively 
small, but were growing rapidly. The size of LTCM's exposure in 1998 
did come as a surprise, however. But in its aftermath there were lots 
of declarations about how the government did not dare get surprised 
again...

Brad DeLong