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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: GREENLAW4-7 who wrote (21470)	1/13/2002 12:07:54 PM
From: rocklobster	Respond to of 99280

I agree...the most reasonable explanation I have heard to date is that the government wanted ENRON to fail...the question then becomes "WHY"...we will probably never know the answer..... rok

To: GREENLAW4-7 who wrote (21470)	1/13/2002 2:19:46 PM
From: James Calladine	Respond to of 99280

"I have not heard anyone consider why GOVT helped bail out a hedge fund in 98, and the airlines in 2001 but left ENRON to sink!" And you haven't speculated that: -- Govt expected collapse of that fund would "break" the financial system? -- Did not feel the same relative to ENE? -- Wanted to distance themselves from what may be proven to be a group of crooks running ENE? Namaste! Jim

To: GREENLAW4-7 who wrote (21470)	1/13/2002 3:49:38 PM
From: fishweed	Read Replies (1) \| Respond to of 99280

greenlaw4-7....Another consideration re ENE (not) and LTCM bailout........the average investor could not invest in LTCM, they had minimum amounts allowable........it was all big money........might that have had some influence on the bailout? fishweed

To: GREENLAW4-7 who wrote (21470)	1/13/2002 8:56:48 PM
From: retiredcfo	Respond to of 99280

Greenlaw: Long Term Capital was a very different kind of bailout: The Fed acted as a broker - but NO tax payer $$$ ever spent - very different than loans involved with Chrysler. (Remember Iacocca whining when loans actually had to be repaid - he was hoping for forgiveness?) The Fed stepped in because LTCM had positions in U.S. Treasuries - and presumably sovereigns as well - into the hundreds of billions with the potential of significant disruption of treasury market - none of us needed that. Nobody at LTCM kept their job because of gov't like jobs were preserved at Chrysler. Better question is why Chrysler and not Enron. My guess: Chrysler was slowly coming apart - Iaccoca was charismatic - and big union sponsorship. Iaccoca for repubs, UAW for dems. Enron was quick implosion. gm