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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (28920)	9/25/1998 1:18:00 PM
From: Mosko	Read Replies (1) \| Respond to of 94695

Here is an tidbit you all may find interesting: Posted by Bryan W. Poe on Friday, 25 September 1998, at 10:59 a.m. Fischer Black and Myron Scholes, The Pricing of Options and Corporate Liabilities. Journal of Political Economy 81 (May 1973), pp. 637-654. Their work laid the foundation for much of the derivatives industry. Merton Miller conducted further research which also was very important to the derivatives industry. Of these three pioneers, two are still living and they are both principals at Long-Term Capital Management LP in Greenwich, Connecticut. Recently, Mr. Black and Nr. Miller each received a Nobel Prize in Economics for their work on derivative pricing theory. The ramifications of their failure at LTCM are enormous for the derivatives industry. From: prudentbear.com Somehow I don't think this will be the only bailout. Mosko

To: yard_man who wrote (28920)	9/25/1998 1:18:00 PM
From: Serge Collins	Read Replies (1) \| Respond to of 94695

The market is once again pricing in a rate cut and is firming. It's amazing that so many investors think a rate cut will solve this mess. You will get a small rally when it happens but it will quickly fizzle. Never mind 1987, this reminds me of 1929 when banks and big investors, led by J.P. Morgan, tried to bail the market out of the mess that led to the dirty 30s. This time around the banks have more friends, like the IMF, brokerages and their paid touts (Abby Joseph Cohen will live in infamy after this debacle) and governments, but its still won't be enough to arrest the economic decline we face. Of course the Asians and their corrupt leaders are most to blame for this, but Western banks (greed) and Greenspan, who is still fighting yesterday's battle (inflation), Clinton and his administration, all will come in for a large part of the blame as well. It's sad when you think the sacrifices working people and average citizens have made over the last six or seven years, working longer hours for less pay, having to accept reduce government programs in the name of fighting deficits, will be rewarded by the "mother of all economic debacles".