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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (308)	10/3/1998 6:44:00 PM
From: Enigma	Respond to of 2794

Henry - thanks for your very good post about accounting standards _ believe it or not I'm an accountant (a C.A. - like the American CPA) but I haven't been in practice since I qualified - I guess the whole topic of accounting standards has been too dry for the media to pick up on - generally I have heard people in the investment business (fund managers mainly) complain about accounting standards in emerging markets, but the mistaken impression generally was of Japan as a developed country. Not so in many ways it is now apparent. E

To: Henry Volquardsen who wrote (308)	10/4/1998 10:04:00 AM
From: Enigma	Read Replies (1) \| Respond to of 2794

Henry - re LCM bailout: Where did the $3.5 billion package actually go? The impression I got was that the funds went to the brokers/banks who had lent the fund margin $$$. One of the rescuers was Merrill Lynch - to the tune of $700 million apparently - so if they were a creditor of the fund they could have got money back too? If my assumption is right the bailout substituted one lot of creditors for another? Then I suppose the next step would be for the fund to be wound up and all the positions liquidated. As you must know there are rumours that the fund is short on gold contracts for anything from 100 - 300 tons. Presumably the new management will try to cover this position gradually. Ted Arnold of ML (no chinese wall possible in this case) is thus in something of a conflict - having been a raging bear on gold in the last few years (with so many clients short one has to more than wonder at this). So if in effect Merrill is part of the new management of LTC (an oxymoron if there ever was one!) unwinding gold, it would hardly do for their analyst to continue to be a raging bear. Does this explain why Arnold has now become a mild bull on gold calling for a rally to $315?! A goldilocks rally if you like because a sharp rally would really hurt the chances of the new creditors getting their money back on the gold part of the LTM portfolio.. This is just one example of the sort of insider goings on that are likely with this cosy situation. Or do I just have an evil mind? Forgive me if this sort of query has already posted in the past. E