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NEW YORK -- Worried that a large, aggressive
private investment fund might
collapse from losses on more than $90
billion invested in financial markets around
the world and jeopardize the health of the
nation's banks, federal banking authorities
helped arrange a $3.5 billion bailout.
The bailout of Long-Term Capital Management LP raised questions about the government's unprecedented role in rescuing a private investment fund for wealthy investors who can afford to lose millions without flinching. Watch for problems with derivatives also. Remember the County of Orange in California declared bankruptcy a few years ago mainly because of derivative investments. I believe one man, the controller or city manager got fired and demonized because a scapegoat was needed. Surely many other politicians knew of the investment portfolio.
The use of the words "rescuing a private investment fund". If you look at what is listed as institutional funds under management with these "private investment funds" you will find the primary revenue of the fund being "government funds" listed as institutional funds. NOT PRIVATE. They are bailing out their own asses towards government funds which are kept hidden from the public, with the public's own tax funds. Wouldn't Al Capone, Vito Genovese and Bugsy Siegel be jealous of those tactics... As per Orange County, when a few researchers stumbled across Orange County's Comprehensive Annual Financial Report (CAFR), it showed 16 billion in profitable investments. They only talked about the investment "cell" operations which tool a loss. They forgot to mention the profitable "cell" operations that were profitable. The government investment managers are heavily involved with derivatives (futures, calls, puts and currency forward contracts). I can assure you that they were selling calls and buying puts on the market in conjunction with each other at the 9000 level to the tune of trillions of dollars. Exchange transaction records will bear that out. The whip sawing action here internationally is no accident. Government financial managers in unionism with each other, are making a killing (on the world |
and domestic markets) as the majority of
everyone else is getting killed.
You can in most probability, expect the composite government funds to continue accentuating "their profits" as "their" objective of world domination is obtained. Through selling calls, buying puts and currency forward contracts as the primary market makers, the extreme profits are obtained. These positions are paper transaction which hedge the physical holdings that incur the loss as the market declines, or if used in reverse, accentuate the profits on the physical positions held as the market goes up. PS: Pennsylvania's CAFR lists the total number of open contract positions taken for the year. (futures, calls, puts & advance forward currency contracts). As a state, government, PA, by itself, is a market player with no equal from the private sector. The monopoly that composite government holds on the world markets makes the monopoly of AT&T, look like a kid on the street corner selling lemonade. The aspect of world financial conquest on the part of composite government is alive and well as viewed by the recent world market activities. Going into the year 2000, when most of the public traders are blown out through this activity, then the "Boys" will go for their robjective of 14,000 in the Dow with them holding the market position and the majority of the open interest (64%) as the public lies on the ground licking their wounds after getting whipsawed in the 7500 - 8000 range for the Dow...
Walter Burien (AKA - Bubien) "Give me control over a man's economic actions, and hence over his means of survival, and except for a few occasional heroes, I'll promise to deliver to you men who think and write and behave as I want them to." Benjamin A. Rooge |
