Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Challo Jeregy who wrote (28277)	10/3/1999 7:25:00 PM
From: Stcgg	Respond to of 99985

LTCM Article (from WSJ).. October 1, 1999 New York Fed President Says LTCM Is Nearly Out of Business Dow Jones Newswires CHICAGO -- Long Term Capital Management is close to being out of business, according to New York Federal Reserve Bank President William McDonough. Speaking at a dinner here during a conference on recent global financial crises, he said the 14 firms that put up the money to bail out the beleagured hedge fund have received most of their money back. Mr. McDonough said if the firm is to continue it would be under another name -- if it is to operate at all. "I can assure you that [closure] is a result that pleases me considerably," Mr. McDonough said. Mr. McDonough said the current management team at LTCM is fettered in what they can do until they pay back 90% of the equity some of Wall Streets most powerful firms put up. Mr. McDonough was pivotal in organizing the rescue of LTCM in the fall of 1998, when it became apparent the huge fund was near insolvency. At the time, the fund, run by a number of Nobel Laureates, had $120 billion in balance sheet exposure and $1.3 trillion of notional derivative exposure. It was feared at the time that the failure of a hedge fund of LTCM's stature could roil international financial markets.

To: Challo Jeregy who wrote (28277)	10/3/1999 10:51:00 PM
From: Lee Lichterman III	Read Replies (3) \| Respond to of 99985

I just thought of something I have been meaning to post for a couple days now and kept forgetting. While we have all beenwatching the Dollar, the interest rate etc, we took our eyes off the foreign markets. I noticed the other day that Korea was up to around 1027 and last week hit 800. Unless I am seeing bad quotes, this means Korea fell 20% while no one was watching. With memory in full swing etc, any ideas on what is going on and if it will have an impact here???? Also, in case I forgot to post it, I am playing the war game thing again starting tonight so my site will be getting updated at weird times and most probably early morning if at all. If the date doesn't change, it wasn't updated. No real direction predictions for me. I think the Fed should raise but I doubt he will. If he raised, the market would probably drop then pop as earings rolled in. If he doesn't raise, he canhold this market hostage and keep it some what under control with threatening words, a change in bias etc and possibly keep it sideways for a bit longer going into the November meeting. he has already announced he doesn't see Y2K as any threat so the pudits that claim he won't raise later due to Y2K are fooling themselves. I think as long as the market behaves, AG will wait and hold the street hostage. Any sign of irrational exuberance and he will sweep in a pop the rate up from now on. War has been declared and he knows the tight rope is getting narrower. Good Luck, Lee