Talk:Long-Term Capital Management

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[edit] Pennies in front of steamrollers

correct me if i'm wrong, didn't someone make that statement before Taleb using nickels instead of pennies. I think the quote was somewhere in When Genius Failed which was published 7 years before Black Swan. —Preceding unsigned comment added by 128.100.43.18 (talk) 23:56, 20 March 2008 (UTC)


So which of the descriptions of LTCM's activity is correct, and why are there two im this article?

18.26.0.18 04:30, 31 Jul 2004 (UTC)

I think someone should add Warren Buffett's important contribution in resolving the near meltdown of the finance system caused by this.


Last paragraph contains opinion/conclusion unsuitable for encyclopaedia, IMO. 213.202.106.128 19:29, 9 September 2006 (UTC)

Hang on a sec, arbitrage is by definition riskless, so the last part doesn't make sense.

Last paragraph removed - not accurate, not NPOV, purely unsupported opinion. Andrew 09:38, 22 November 2006 (UTC)

[edit] Breakdown of $3.625 billion bailout

I have corrected this several times. Somebody keeps editing the amounts contributed by individual banks so that they (a) don't match the cited GAO reference and (b) don't actually add-up to $3.625B. The amounts as listed now ARE CORRECT; please don't mess with them. 1) Credit Agricole was not part of the bailout consortium 2) Salomon Brothers and Smith Barney had already merged at this time to form Salomon Smith Barney 3) Lehman Brothers did contribute $100M Note that the amounts as listed now match the GAO report that this article references and add up to $3.625B. Please don't mess with them. Thanks. Albertod4 (talk) 21:41, 26 December 2007 (UTC)

[edit] BBC Horizon documentary

There is an interesting documentary about LTCM: made by Horizon for the British Broadcasting Company: The Midas Touch.

[1]

It has interviews with Myrton Scholes and Robert Merton. It also reveals that LTCM had their offices on East Weaver Street, Greenwich, Connecticut. This is historically the center of the world's hedge funds.

Bb5victor 01:40, 4 July 2007 (UTC)

[edit] impact on M&A of LTCM drop down

Can any one please let me know of any report, wherein it is mentioned about the impact on M&A market after LTCM got crashed. Thanks. —Preceding unsigned comment added by 199.67.203.141 (talk) 06:59, August 24, 2007 (UTC)


[edit] 1998 Bailout

Bear Stearns declined to participate. Hmm. I wonder if that's why BS was fed to the wolves in 2008. —Preceding unsigned comment added by 208.74.152.146 (talk) 13:56, 2 April 2008 (UTC)

[edit] Selling S&P 500 options

For the statement "In fact, some market participants believed that LTCM had been the primary supplier of S&P 500 vega, which had been in demand by US insurance companies selling equity indexed annuities products for the prior two years.[citation needed]" one reference is Donald MacKenzie's chapter in Cetina, K.K. & Preda, A. (Eds.) The Sociology of Financial Markets. Oxford University Press: 2006. There MacKenzie cities interviews with LTCM ex-partners that confirm that it had sold hedged positions in S&P 500 options that were net short volatility, because of the high implied volatility in those options. I'm not sure about the connection to insurance companies and equity-indexed annuities, though. EugeneM (talk) 04:08, 13 April 2008 (UTC)