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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: The Vet who wrote (4771)	3/24/1999 2:09:00 PM
From: Bobby Yellin	Read Replies (1) \| Respond to of 81013

It would be neat if the guys on the otherside of the trade contacted Bill. just found this cnn.com wonder if the internet could change the world..

To: The Vet who wrote (4771)	3/24/1999 6:08:00 PM
From: IngotWeTrust	Respond to of 81013

Vet, no one has gotten paid, (LTCM) but copious #s of options have been written, creating money out of nothing, in small amounts. But small amounts x zillions of contracts x all the time in the world... well, Vet, these archane option strategies buy and sell time, something Alan Greenspan seems to think belongs exclusively to him to issue or stop. All the while the bailout consortium are whittling down their losses as long as they keep extending the timeframe b/c Al told them to. The simpliest way to think about this is to put it in layman's terms, the common ordinary personal credit card: THE LTCM bailout was basically 11 banks colluding to provide quantum increases in Authorized Credit Card Balance, PLUS unlimited time to pay off said debts, using the minimum monthly payment plan, (only this is a qtrly gig) b/c those 11 are only charging zippo/miniscule % interest rates. Oh, and the kicker? The Fed will make the payments to all 11 if need be to keep the war, errops, the NYSE market from going south. It is the oldest worry/debtor/payee negotiation in the world: *I'll forget t'interest if you'll just pay t'principal* gig. In otherwords, 11 new banks paid off X# of old banks who had LTCM's margin loans on their books inorder to receive the guaranteed income stream from the minimum quarterly payments. Thus the fractional banking system, stays GLOBALLY afloat for the forseeable future timeframe. Those 11 banks never expect to get fully paid, VET. They just want the cash flow to show/prove to the bank regulators --yes the very same regulator "foxes guarding the bank henhouses CBs-- to prove that LTCM's in the 'performing' loan category. As long as LTCM is "performing," A) there is no need for any of the 11 banks to increase their "loan loss reserves," B) the 11 banks' shareholders never get spooked by falling bank share prices, C) and the whole game is perpetuated. Why? B/C selling time = an "endless" supply/commodity" abstract game with tangible cash flow. Pretty slick eh? Now, go back and read again what ole Alan said at 3:40 PM EST the very day the market turned on a dime. Pay special attention to the comments Alan made about RESERVES... you'll see that THIS was the message delivered that knocked the market on its keyster. It is also why the "spin" machine is out in full force by the affected LTCM CBs/& other major players. Notice the geographic location of the author of the "all is fine w/LTCM loans" spin piece, paying special attention to the part where he says they aren't worried about needing to increase loan reserves, even tho' AG is. For a change, Uncle Al spoke plainly and in simple English. And we are now some 400 DOW points below where we were when "Al Uttered" Print this out, and keep it handy for reference when you re-read AG's speech. C'ya. O/49r