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To: Link Lady who wrote (16522)9/26/1998 9:21:00 AM
From: Wren  Read Replies (1) | Respond to of 18056
 
re: no one at LTCM doing anything obviously wrong

Perhaps it is morally wrong to use leverage to the extent that you will be unable to make your creditors whole if your bet turn out to be wrong. If you are going to make bets this big, you should have investors, not creditors, at risk.

However, the creditors should have known better, so they share the responsibility.