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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Jess Beltz who wrote (41321)	12/29/1998 12:23:00 PM
From: Cynic 2005	Read Replies (2) \| Respond to of 132070

I agree with you on the reason for LTCM bail-out and subsequent market manipulation by the Feds. However, as most of us have been saying for a long time here, Greenspan proved to be incompetent on two counts: a) in not seeing the problem coming, b) EVEN after such a debacle has occurred due to sheer leverage, he and his cohorts did nothing to prevent speculative frenzy that feeds on leverage. At the very minimum, he could have raised the margin requirements. After all, if the corporate debt market is what the Feds are REALLY concerned about, raising margin requirements for equity positions shouldn't effect the corporate debt market. I am beginning to suspect Greenspan's motives as well. What is he is being used for political advantage by Clinton?

To: Jess Beltz who wrote (41321)	12/29/1998 1:06:00 PM
From: Mike M2	Read Replies (2) \| Respond to of 132070

Jess, yes AG sought to save the banks but he also encourages the use of extreme leverage by bailing out funds or banks who get into trouble. If your typical run of the mill money manager without friends in high places had run a fund to the brink of insolvency he would have been fired. That fact that the reckless gamblers are still at the helm is an example of crony capitalism -American style. BTW I heard the partners of LTCM got a substantial bonus. AG's " timely intervention" only assures that the inevitable collapse will be more devastating in the end. Mike