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 : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Sword who wrote (1773)	9/24/1998 11:44:00 AM
From: Jags	Read Replies (2) \| Respond to of 3339

They have leveraged exposure of 1 trillion. But their net assets was just 5 billion, now around 2.5 billion. And the bailout package is just a few billion. Also soros was supposedly asked to "invest" 1/2 a bill. There are lot of difference between net assets worth a few billion and leveraged assets of 1 trillion. Ofcourse, unwatched or taken by surprise, the leverage can wipe out the entire net assets. Usually things stop at wipe out of net assets bcos of margin calls that force the funds to liquidate and meet margin requirements. From the article: Long-Term Capital said it had lost $2.5 billion, or 52 percent of its net assets, in trading so far this year, most of it in less than two months. Jags