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Re: Bear Stearns Plans $3.2 Billion Bail Out / Largest since LTCM
Posted by: Anonymous User
Date: 06/22/2007 06:11PM
this is classic LTCM 2.0
why would anyone buy this debt? the debt's losses already ruined one hedge fund, and with a billion or more of it to dump, the price is only going one direction... down. who wants to try to catch that falling knife?
in LTCM, the fed twisted the major bank's arms to buy the crap in order to save the system
thus, risk taking will exponentially increase until the bailout is too big for the system to handle
-abb
why would anyone buy this debt? the debt's losses already ruined one hedge fund, and with a billion or more of it to dump, the price is only going one direction... down. who wants to try to catch that falling knife?
in LTCM, the fed twisted the major bank's arms to buy the crap in order to save the system
thus, risk taking will exponentially increase until the bailout is too big for the system to handle
-abb
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