Remember Long Term Capital Management?

This is one of THE BEST articles I've ever read, regarding the recent history of Government Bailouts.

Does any one remember Long Term Capital Management?

I do.........they were the biggest failure, at that time, of an investment fund in US history........anyway, the NY FED summoned officials from 14 different banks and brokerages to an emergency meeting in September of 1998, fearing another "market meltdown crisis". The next day LTCM or at least its creditors were bailed out of at least some of their risk.

Bear Stearns was on of the banks who had much to lose............infact they were LTCM's prime broker, they cleared all of their trades.......and the were the only one of the 14 major creditors who voted against the government bailout.............the knew more than the rest.

Read this article, you'll understand a more about our special form of "Capitalism"