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Bruce,
Hi !! The following is just my opinion. Mr Greenspan had to get involved in
order
to herd the bankers (who may already punch drunk by soooo many different bad
loans everywhere and all over), who might have collectively decide to give up
saving
LTCM, but these guys are not thnking of the big picture as Greesnpan did, the
thing
is so big,it might really pushed the house of cards down, so to speak, so Mr. G.
has
to come or things will become so out of control, in the future if he, as
powerful as he
is can't stop the storm coming. So we have to look at his point of view, if some
situation is a world class killer. Intervention is good , if you are not biased,
look what
will have happened to the world in October 1987. if you FED has not have the
wisdom
and decisiveness, in giving the New York specialists unlimited access to funds
(through
the banks) so that they can support and absorb all the panic from the sellers,
after
the smoke was clear, that is truly what saved the day. (If you only know that
the
specialist weren't on their posts anymore or not answering their phones in the
scary
time.) We might have a different world today. So right now, Mr. G is putting out
a potential forest fire that so far is controllable, despite some attitude of
the bankers
who are hurt and licking from their wounds, and need current leadership to guide
them in these times.
BruceB wrote:
> >Suprise! Looks like LTCM isn't the only one having problems. Check
> >out:
> >
> <<Big Snip>>
>
> David, Michael, Tim,
>
> It's entirely possible there is significantly more bad news to come, we're
> all just speculating here (excuse the pun), but here's the question I would
> love an answer to. If the potential collapse of LTCM would have caused
> financial Armageddon that would've brought down even the large investment
> banks in question, why were they so hesistant to come to the aid of LTCM to
> begin with? Why did it take the involvement of Greenspan to get these guys
> to cough up the money?
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