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Technology Stocks : Dell Technologies Inc.

DELL 122.46

-8.5%

Nov 17 3:59 PM EST

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To: DO$Kapital who wrote (68769)	10/2/1998 10:11:00 AM
From: Lee	Read Replies (2) of 176387

Just4,..Re:Many members worry the Fed sent the wrong message with its bail out of wealthy investors. I would suggest you read Greenspan's remarks regarding the decision to facilitate an orderly transfer of responsibility for LTCM. The link is bog.frb.fed.us Testimony of Chairman Alan Greenspan Pay particular attention to the following sentence and then consider what would have happened in the market if LTCM liquidated remaining assets to close down the fund at one time. Officials of the Federal Reserve Bank of New York facilitated discussions in which the private parties arrived at an agreement that both served their mutual self interest and avoided possible serious market dislocations. Financial market participants were already unsettled by recent global events. Had the failure of LTCM triggered the seizing up of markets, substantial damage could have been inflicted on many market participants, It does not matter about the offer to buy, only that the fund is now under different management. Hopefully, the assets won't be dumped on the market at once and they can in fact, salvage some of the positions. It has nothing to do with bailing out rich individuals. The firms which pledged funds and took over ownership did so to save what they could of their own stupid investment decisions. They will no doubt lose a significant amount anyway.

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