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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (70192)	11/7/1999 9:45:00 AM
From: Freedom Fighter	Respond to of 132070

John Reed on the financial crisis last year! "Where the models (risk management) tend to go wrong, is in failing to anticipate "second order" effects. Thus, although Citi had no direct exposure to LTCM, it was the primary lender to half the companies that constituted the rescue committee. We were in over our heads with every one of the firms that did have exposure to LTCM. It would have reverberated through the system in about two nanoseconds. Not one of those firms had enough capital to sustain the losses". Gee, and I remember a leading strategist from one of the primary firms appearing on "Meet the Press" at the height of the crisis telling Joe Public that there were no problems. Just keep sending your money in at any and all prices. Hmmm! John Reed must not know what he's talking about. (g)