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When the consortium made their investment, the equity of the original LTCM
investors was reduced to 9% of its original value. Since the consortium
investment, the LTCM has made about 15-20%, raising that to about 11%. Not a
total wipeout, true, but your statement could be taken to mean that the original
investors got back to even, when they still lost 89% of their investment, plus
interest forgone.
Makes it hard to take someone seriously when they are so careless with the
facts.
Regards
DanG
James Taylor wrote:
>
>
> The original investments were not wiped out, they were able to stay in their
> positions and after Easy Al Greenspan, father of the greatest speculative
> mania known to the markets, cut the rates 3 times in rapid succession and
> the market "stabilized", LTCM's positions swung back.
>
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