ES Journal Archive (2006 - 2008)
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spectre,
part of that LTCM bailout was an unwinding of the selling. The selling that occurred in front of the bailout as wall street BSDs recognized that LTCM would have to divest positions in order to raise capital. In true Wall Street fashion, the BSD's sold and sold, kicking LTCM management while it was down (it's easier to kick someone on the ground, you don't have to lift your foot as far).
they can't/didn't do that in the current crisis becaause these aren't treasuries and there is no market for them anyway. There is no market for them. They can't even mark them to market because there is no market. Different situation, but they don't write instructions on a dollar bill and if the herd wants to run prices up, they'll run 'em up.
part of that LTCM bailout was an unwinding of the selling. The selling that occurred in front of the bailout as wall street BSDs recognized that LTCM would have to divest positions in order to raise capital. In true Wall Street fashion, the BSD's sold and sold, kicking LTCM management while it was down (it's easier to kick someone on the ground, you don't have to lift your foot as far).
they can't/didn't do that in the current crisis becaause these aren't treasuries and there is no market for them anyway. There is no market for them. They can't even mark them to market because there is no market. Different situation, but they don't write instructions on a dollar bill and if the herd wants to run prices up, they'll run 'em up.
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