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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Joseph G. who wrote (1223)	9/27/1998 10:45:00 PM
From: Kirk ©	Read Replies (2) \| Respond to of 15132

JG- I have saved 4 articles here: suite101.com quoting one of the articles at the above url: "Despite all the talk of wierd derivatives, this is not a derivative loss or even a Russian default problem. Yes those contributed but neither were major factors. The really big torpedos that hit LTC were old fashioned leveraged bond trading. They were long mortgage back securities and short US treasuries. As credit spreads widened they got hammered. They had similar positions in Europe where they were long European bonds and short US treasuries against them. The $100 billion lending from banks was repo on securities. LTC would have gotten hammered just as bad if they had never done a single derivative. " The above quote I posted on Friday and seems to agree with what BB said. It seems there are several versions of what went wrong with LT CM. I would be interested in a trustworthy news source that explains just how they got so much leverage and how they placed their bets. I'd also like to know how many other hedge fund positions are in danger of collapsing.....

To: Joseph G. who wrote (1223)	9/27/1998 11:30:00 PM
From: mister topes	Read Replies (1) \| Respond to of 15132

Yes, what ARE you doing here? Haven't you heard Brinker forecast declining Treasury rates which is what happened this year. And Brinker has admonished all from investing in junk bonds and CMO securities. So if the bankrupt geniuses as LTCM had listened to Moneytalk they might have saved themselves a cool hundred billion dollars this year. Looks like all the naivete belongs to the now broke bigwigs at LTCM. Moneytalk triumphs over the black box noble laureate crowd in spades.