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To: Mary Cluney who wrote (67264)	10/23/1998 2:01:00 PM
From: GVTucker	Respond to of 186894

<<However, for LTCM to leverage several billion dollars into trillion dollar bets - I would think the equation they use is probably a little more complex than just to buy or sell stocks short and wait out the market. >> The fixed income market is largely unregulated. That is why LTCM was able to lever its assets to such a large degree. This is also why you are much more likely to see questionable activities in the fixed income market. Equities, on the other hand, are highly regulated. Thus, if you aren't content being a penny ante player (where you can fly under the SEC radar), you need to take the manipulation and the games away from the equity markets. Too hard to make a lot of money, and too easy to get caught once you start dealing in large numbers. <<Once that kind of stuff gets into your head (its pretty heady stuff - being king of the universe) - strange things happen.>> Agreed. The "master of the universe" syndrome is indeed dangerous, and Kurlak will never be accused of being humble, that's for sure. That's why I consider Kurlak a valuable source, but not a decision maker, as far as my portfolio is concerned.