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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: Lee who wrote (68991)10/3/1998 4:17:00 PM
From: Mohan Marette  Read Replies (1) of 176387
 
Ref:LTC and Hedge funds - Sooner or later we all have to pay.

Lee:
I have a feeling we will all pay for it somehow irrespective of how this is resolved.

Whether the government is involved or not (and they are not as we all know) seems to be a I think and I tell you why.

1.If they were allowed to go bankrupt it would have created more havoc in the market thereby reducing the equity values of portfolios, if I am not mistaken most people have some sort of vested interest in the market whether through their IRAs,direct stock ownership or whatever.Since a lot of the participants in these schemes are banks and investment brokers it could also come back to us via higher fees and charges.

2.If the government were to bail them out with tax payers money then obviously everyone pays.

Even the bail out by bankers and investment houses of LTC could be a temporary fix as they could still loose more money and I think this whole process is merely a postponement of the obvious.

Greenspan said in his recent testimony no amount of regulation can fix the problems and if the investors were stupid enough to invest money foolishly it was their problem and he also implied the Funds were regulated by the market forces. You and I know investors were stupid enough and they did lose big time and there was no market forces regulating the thing as it was alleged a lot of the investors didn't even know or even bother to ask how the funds were being deployed or invested by LTC.

There is certainly something fishy going on in Denmark is all I am saying.<g>
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