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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST
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To: Ken Beal who wrote (68928)10/3/1998 9:48:00 AM
From: Mohan Marette   of 176387
 
Ken,I don't like the government getting involved in these things but in this case their involvement is limited to persuasion and did not involve any cash outlay.The money for the rescue comes from mostly the money center banks and probably a few investment brokers.I think these guys are protecting their interests as all of them seem have invested funds with LTC.

If LTC were allowed to go under then these guys would have lost big time and the numbers would have hit their books immediately but this way at least they can prolong the agony by creating perhaps a false sense of security hoping one day they could get their investments back and perhaps keep the 'investments' still the books.This is my understanding of the situation I could be wrong.

I with you in that these hedge funds are some sort of exclusive clubs for the high networth rich folks,individuals and bankers and I wouldn't shed any tears if all them go under and I would be pissed off if the government bail them out.Funny, we might end up paying for it somehow at the end anyway since the bankers are involved.

What were they thinking:-

I heard LTC borrowed $25.00 for every $1.00 and invested in high risk derivatives in some highly illiquid markets. Imagine,that is like being in margin for 2400% of one's assets!!!! And these guys wants sympathy and government help,HUH? no sir no can do.<vbg>
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