-Caveat Lector-
>From www.cato.org
> Briefing Paper No. 52September 23, 1999
> <Picture>
>
>
> Too Big to Fail?:
> Long-Term Capital Management and the
> Federal Reserve
>
> by Kevin Dowd
>
> Kevin Dowd is professor of economics at the University of Sheffield and
> an adjunct scholar at the Cato Institute.
>
> Executive Summary
>
>
> In September 1998 the Federal Reserve organized a rescue of Long-Term
> Capital Management, a very large and prominent hedge fund on the brink
> of failure. The Fed intervened because it was concerned about possible
> dire consequences for world financial markets if it allowed the hedge
> fund to fail.
>
> The Fed’s intervention was misguided and unnecessary because LTCM would
> not have failed anyway, and the Fed’s concerns about the effects of
> LTCM’s failure on financial markets were exaggerated. In the short run
> the intervention helped the shareholders and managers of LTCM to get a
> better deal for themselves than they would otherwise have obtained.
>
> The intervention also is having more serious long-term consequences: it
> encourages more calls for the regulation of hedge-fund activity, which
> may drive such activity further offshore; it implies a major open-ended
> extension of Federal Reserve responsibilities, without any congressional
> authorization; it implies a return to the discredited doctrine that the
> Fed should prevent the failure of large financial firms, which
> encourages irresponsible risk taking; and it undermines the moral
> authority of Fed policymakers in their efforts to encourage their
> counterparts in other countries to persevere with the difficult process
> of economic liberalization.
>
>
>
> Briefing Paper No. 52 (PDF format, 12 pp. 65 Kb) <Picture>
>
> | Briefing Papers Series | Cato Institute Library | Cato Institute Home
>
> © 1998 The Cato Institute
~~~~~~~~~~~~~~~
>From www.security-policy.org
Beginning only
> Publications of the Center for Security Policy
> No. 99-D 104
>
> ------------------------------------------------------------------------
> DECISION BRIEF
> 23 September 1999
>
>
> The 'Smoking Gun': Sen. Inhofe Secures Proof of Sandy Berger's Involvement in
> Clinton's Pandering to Puerto Rican Separatists
>
> (Washington, D.C.): Twice in as many weeks, Samuel Berger -- the China trade
> lawyer-cum-Democratic political operative turned President Clinton's National
> Security Advisor -- has prevaricated publicly about his direct, personal
> involvement in decision-making that led to the early release of sixteen
> convicted Puerto Rican terrorists. For his mendacity in this matter, if not for
> the content of his flawed security policy advice, Sandy Berger should at last be
> relieved of his duties.
>>Go to site for remainder <<
A<>E<>R
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Forwarded as information only; no endorsement to be presumed
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In accordance with Title 17 U.S.C. section 107, this material
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expressed a prior interest in receiving this type of information
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A<>E<>R
~~~~~~~~~~~~~~~
The only real voyage of discovery consists not in seeking
new landscapes but in having new eyes. -Marcel Proust
+ + + + + + + + + + + + + + + + + + + + + + + + + + + +
"Believe nothing, no matter where you read it, or who said
it, no matter if I have said it, unless it agrees with your
own reason and your common sense." --Buddha
+ + + + + + + + + + + + + + + + + + + + + + + + + + + +
A merely fallen enemy may rise again, but the reconciled
one is truly vanquished. -Johann Christoph Schiller,
German Writer (1759-1805)
+ + + + + + + + + + + + + + + + + + + + + + + + + + + +
It is preoccupation with possessions, more than anything else, that
prevents us from living freely and nobly. -Bertrand Russell
+ + + + + + + + + + + + + + + + + + + + + + + + + + + +
"Everyone has the right...to seek, receive and impart
information and ideas through any media and regardless
of frontiers."
Universal Declaration of Human Rights
+ + + + + + + + + + + + + + + + + + + + + + + + + + + +
"Always do sober what you said you'd do drunk. That will
teach you to keep your mouth shut."
--- Ernest Hemingway
+ + + + + + + + + + + + + + + + + + + + + + + + + + + +
Forwarded as information only; no endorsement to be presumed
+ + + + + + + + + + + + + + + + + + + + + + + + + + + +
In accordance with Title 17 U.S.C. section 107, this material
is distributed without charge or profit to those who have
expressed a prior interest in receiving this type of information
for non-profit research and educational purposes only.
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