Was the Fed-Organized Bailout of LTCM Favorable?
In September 1998, the Federal Reserve of New York intervened to rescue Long-Term Capital Management (LTCM), a very prominent hedge fund on the brink of collapse. The Fed followed this course of action because it wanted to prevent any dire consequences that would affect world financial markets should the hedge fund be allowed to fail. The incident induced an open-ended extension of the Fed’s responsibilities without congressional authorization. Furthermore, the benefits gained through the U.S. Federal Reserve’s intervention in the rescue of LTCM may have been lower than anticipated. Although it did not provide any public money for the salvation operation, the costs, in terms of ‘moral hazard’ as well as the indirect implication of Crony Capitalism, are perhaps greater than those initially perceived.
Long-Term Capital Management was a hedge fund company founded by John Meriwether in 1994, in cooperation with Nobel Prize in economics winners Myron Scholes and Robert Merton who resided on its board.[1] Hedge funds are essentially large, unregulated, private investment pools for wealthy individuals and institutions. They are not limited by the portfolio composition and leverage (how much they borrow compared with their capital) restrictions put on other types of investment vehicles.[2] This company had developed a sophisticated computer model to take advantage of arbitrage deals usually with U.S., Japanese, and European sovereign bonds.
[1] Brennan, Deirdre, Long-Term Capital Management: Technical Note on a Global Hedge Fund, Thunderbird, 1999
[2] Prabhu, Siddharth, Long-Term Capital Management: The Dangers of Leverage, Duke University, 2001
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...San Jose State University, 2001
McKenzie, Mark-Anthony, Growth the Global Hedge Fund Industry and Due Diligence of Offshore Hedge Funds, Cayman Islands Monetary Authority, 2001
Morgenson, Gretchen, Hedge Fund Bailout Rattles Investors and World Markets, The New York Times, Sept, 25 1998
Prabhu, Siddharth, Long-Term Capital Management: The Dangers of Leverage, Duke University, 2001
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Dowd, Kevin, Too Big to Fail? Long-Term Capital Management and the Federal Reserve, CATO Institute, 1999
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Furfine, Craig, The Costs and Benefits of Moral Suasion: Evidence from the rescue fo long-term capial management, BIS Working Papers No 103, 2001
Kilander, Peter, LTCM – Hubris (or, Moral Hazard), LBO-Talk, 1999
...: Wall Street Insider - Financial News, Headlines, Commentary and Analysis - Hedge Funds, Private Equity, Banks. Retrieved January 15, 2012, from http://dealbreaker.com/2010/06/wachovia-vp-had-good-reason-to-steal-money-from-bank-that-youll-probably-never-understand/
Strehle, Susan. "Chosen People: American Exceptionalism in Kingsolver's The Poisonwood Bible." Critique: Studies in Contemporary Fiction 49.4 (2008): 413-428. MLA International Bibliography. EBSCO. Web. 27 Mar. 2011.
Jean DeMarr, Mary. “Barbara Kingsolver: Life and Works”. Barbara Kingsolver A Critical Companion. Ed. Kathleen Gregory Klein. Connecticut: Greenwood Press, 1999. 1-18. Print.
...t and dark, art and pain, choice and regret, cruelty and sacrifice.” [Libba Bray] The character “foils” within Harper Lee’s To Kill a Mockingbird add a real meaning of development, and complexity in the story that grasps the readers attention. It can be seen that each pair of characters are present in a way that the readers are able to show the contrast between each pair and can acknowledge and recognize a “good” character from a “bad” one. This contrast is most evident in the way each character deals with a situation. It is essential that, as readers, we do not assume that certain characters are the same due to some of the likeness that they have because each person has their own personality that creates the true image of their individual that is being described. In this world, there will be both good and evil because that is what creates balance in the world.
Baym, Nina, and Robert S. Levine. The Norton Anthology of American Literature. 7th ed. New York: W. W. Norton & Company, 2007. 348-350. Print.
Throughout To Kill a Mockingbird, Harper Lee vividly illustrates two sides of humans. These two sides are their dark side, as well as the highlights, and all that is good, and noble. Harper Lee uses a sort of diction to explain this very clearly. She also clearly uses motifs to her advantage to show this. In To Kill a Mockingbird, this is clearly shown time and time again.
The manner in which they are incorporated into the story add a lifelike effect that is not there otherwise. These are, of course, not the only themes; Harper Lee uses many different ones to emotionally connect to the readers. This novel is a timeless coming of age tale of little Scout Finch, who simply wishes to have fun and find adventure in Maycomb County. It will be read and analyzed by decorated scholars and young students alike for centuries to come. It has influenced politics, civil rights movements, and so many other things. It is truly one of the greatest literary works of all
Lee uses moral instruction to connect the reader to the story and through the use of a literary term called allusion. To Kill A Mockingbird walks us through sins of society and the moral role we play when we respond to others. Atticus points out several time that you should never judge a man “Until you climb into his skin and walk around in it.”1 Lee writes To Kill a Mockingbird to point out basic morals people should live by and she does this through the life and times of adolescents. The point of view is one in which adolescents, through thoughts and feelings, can connect. The novel also depicts a single father that demonstrates moral responsibility even in situations of difficulty and a world of intolerance, “It’s not fair for you and Jem, I know that, but sometimes we have to make the best of things, and the way we conduct ourselves when the chips are down . . . . this case is something that goes to the essence of a man’s conscious”.2 The story is a faced-paced tale of passage from childhood to adulthood using historical and social settings. It deals with emotions that are...
Several track and field athletes all over the world have been known to use enhancement drugs over the years without testing positive, however, in recent times, more and more athletes are being tested positive for enhancement drug use due to the improvements of medical technology. In the book The dirtiest race in history: Ben Johnson, Carl Lewis and the 1988 Olympic 100 final, Richard Moore stated that all of the top five athletes in the 100 meter final were using enhancement drugs, but only one athlete was stripped of his medal. This brings us to the question; do enhancement drugs help an athlete? Enhancement drugs cause negative effect physically, emotionally and socially, hence the percentages of doping victims are still increasing.
Edgar Allan Poe was an excellent horror, suspense, and mystery writer of the eighteenth century. His use of literary devices and different literary techniques makes this writer important to American literature. This paper will show how Edgar Allan Poe has made an impact on Society and American literature as well as how Edgar Allan Poe developed the short story. I will also discuss and analyze some of his works and techniques he uses in his short stories and poems.
Bradstreet, Anne. "To My Dear Children." The Norton Anthology of American Literature. Ed. Nina Baym. New York: Norton & Company, 1999. 144-147.
Legend has it that Romulus is the founder of Ancient Rome. Romulus and Remus are twin brothers whom were abandoned at birth. They were placed into a woven basket and sent down the Tiber River. When they landed upon shore the two babies were discovered by a female wolf, who took them in and nursed them. A shepherd then found them, he then took them in and rose the two brothers. When the two brothers became adults they decided to establish a city where the wolf had found them when they were infants. In the process of deciding where it would be, the two brothers got into a fight, Remus was killed. Romulus then founded the town and named it Rome, after himself. Of course, we all know this is just a legend and not real, but the children of Rome were taught it in Roman schools as if it were real. Rome was founded in 753 B.C., along the Tiber River and exists around seven hills. The settlement were near the river for a constant water supply. The early people of Rome were from a tribe called 'Latins', whom were from the Plains of Latium (Trueman, History of Ancient Rome, April 21).
Mackay, Tim. "The Ethics Of The Wolf Of Wall Street." Charter 85.2 (2014): 67.Web. 23 Mar. 2014.
William Sharpe, Gordon J. Alexander, Jeffrey W Bailey. Investments. Prentice Hall; 6 edition, October 20, 1998
Edgar Allan Poe, is one of the most brilliant literary writers in history. He wrote many poems and short stories throughout his rather short lifetime, most of which encompassed such themes as death, destruction, and madness. These intriguing, and often frightening tales, as well as his clever use of a multitude of literary tactics, is what set him apart from the rest, and what makes him so popular still today. Reading his work, one is sure to wonder where these ideas came from. However, a little research into past will certainly open the doors to a better understanding of his writing.