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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Worswick who wrote (1767)	6/14/1999 10:07:00 AM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 3536

lol Fleckenstein sounds like he is hoping the derivatives market implodes. What did we ever do to him? <g> I think the rumours regarding the hedge fund and 'emergency Fed meetings' are a bit over the top. Everybody who missed predicting LTCM's collapse is trying to get ahead of the curve my predicting it this time. Unfortunately although history repeats itself it rarely does so word for word. The collateral evidence does not point to any big strains in the market, credit spreads, for one, are quiet and contracting. The tone in the market is very quiet. Last year when LTCM and several other funds got into trouble the market was rife with rumours and names being bandied about. Right now the market is very quiet. In fact I believe a large component of the current rumour is a lot of board derivatives traders trying to keep themselves entertained. Could a large hedge fund be in trouble? Sure. They are risky investments and it is not rare for a macro fund to take a big hit. But not every hedge fund taking a loss is the dawn of the next apocalypse. Henry