Today, hit me like a 20 ten heavy thing, that this market, is exactly like 1998. LTCM is small in comparison to today’s hedge fund nightmare. That said, the solution, and aftermath are the same. It is interesting too, that if you look at what the thirty year treasury did during that crisis, is unfolding EXACTLY the same this time.
Today, I finally feel like I know what/how/why this is going on, and why there is this glaring disconnect between the market, and the real economy.
Absolute fortunes can be made understanding this, although trying to make money in call options are not going to work, as they are priced with this being the expected outcome.
I just did a search on LTCM, found your article. Would like to hear any other thoughts you might have.
LTCM was a bet gone wrong. This thing is a lot of different types of bets gone wrong.