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To: webschooner
This blows my mind — I’ve never seen anything like it. These thinks usually take months.

You have a short memory. The LTCM bailout and the cross-border ING purchase of Barings both happened virtually overnight. The latter was probably more impressive, as it required direct involvement by the financial regulatory authorities of two countries. Both were ultimately a good thing for stabilizing panicked markets, and ultimately pretty much a wash for the acquiring/financing institutions.

28 posted on 03/16/2008 4:21:31 PM PDT by GovernmentShrinker
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To: GovernmentShrinker
Both were ultimately a good thing for stabilizing panicked markets, and ultimately pretty much a wash for the acquiring/financing institutions.

Not good in the long run. LTCM was also accompanied by loose credit and not coincidentally, the first subprime mortgages were written. The Nasdaq bubble got juiced on the 0.75 cut which exacerbated the ultimate pop. These credit-driven bailouts always lead to new problems and will ultimately lead to monetization. Mises was right.

37 posted on 03/16/2008 4:34:34 PM PDT by palmer
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