Proper now, I’m protecting an eye fixed out for any information of highly-leveraged hedge funds failing as a consequence of leveraged Russian market publicity. In 1998, lots of funding banks had their fingers within the Lengthy-term capital administration pot. When it failed, it threatened our banking system till Greenspan knocked heads collectively to forestall large banks from failing after Russia defaulted. I feel that within the subsequent few months we’ll both study that Wall Road realized its lesson in 1998 (and 2008), or if the banks are nonetheless pursuing morally hazardous insurance policies.
To be clear, I have not learn something about main hedge fund issues, and $121 billion is eye-opening, however not Earth shattering, as long as banks can cowl their losses.
