SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : Green Oasis Environmental, Inc. (GRNO)
GRNO 0.00Nov 13 4:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: John Chylek who wrote (9914)10/3/1998 2:13:00 PM
From: Hawkmoon  Read Replies (1) of 13091
 
The capital of LTCM is perhaps 1% of the total."

John,

What Greenie fails to discuss is how that $2 billion in capital at LTCM was hyper-leveraged so as to be able to control over $100 billion in assets (options and other derivatives).

LTCM was apparently not expecting that lower bond rates would not result in higher stock market prices. Nor did they anticipate a collapse of Russia and how that would impact their positions.

What Alan G. was worried about was that if LTCM was forced to unwind those leveraged positions, there would be a loss of liquidity and resulting price damage in those respective markets.

Anyone remember when several Estates were apparently being sold into GRNO's thinly traded market and forcing down the price??

Where was Greenspan then??

Regards,

Ron
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext