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.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bill Murphy who wrote (19617)	9/24/1998 12:11:00 PM
From: Alex	Read Replies (2) \| Respond to of 116762

Thanks for the heads up Bill. You otta sneak over here more often : - )................ Interestingly, Easy Al decided to make this announcement on a day when Long Term Capital, a large hedge fund partially run by ex-Fed vice chairman David Mullins (a master of the universe and buddy of Al's), in essence blew up. They had about $5 billion in capital and they supported about $100 billion in assets. The firm lost over 40 percent in August and TODAY appears to be bankrupt. The reverberations from this debacle will be felt for a while. stocksite.com

To: Bill Murphy who wrote (19617)	9/24/1998 8:29:00 PM
From: marcos	Read Replies (3) \| Respond to of 116762

smh.com.au ... from #reply-5835246 ... another good thread, that one Fleckenstein's comments #reply-5835616 ; "Now we have a new moral hazard in this country whereby certain hedge funds are deemed too big to fail. First we had banks too big to fail in the 1980s, then the entire S&L Industry in the early 1990s. Then when Mexico went belly up, we saved them, which gave us the last horrific leg of the bull market (go check a stock chart). Next we tried to bail out Asia and Russia. It didn't work, so now we are reduced to bailing out the first hedge fund (AKA: leveraged investment partnership). This is the complete and total socialization of risk. In the end, we will print money no matter what, to save anything that we deem too big to be disruptive. The Fed has no problem fomenting a gigantic bubble, but when things stop booming the Fed finds itself in the bubble management business. They don't want to let the consequences of the boom assert itself. They will be unsuccessful."