Roger Lowenstein

The street knew what their basic trade was. So the street, either for self-protective reasons because they were in the same trades as LTCM and they said, hey, I don't want to be exposed to the kind of losses they're having. I'm going to get out, which moved markets against them. Or sort of more aggressive posture saying, I think LTCM is vulnerable. What they own, I'm going to bet against.

Wall Street stocks were crashing. Credit all around Wall Street was drying up because nobody knew how far or deep the reverberations from LTCM would run.

Wall Street stocks were crashing. Credit all around Wall Street was drying up because nobody knew how far or deep the reverberations from LTCM would run.

Wall Street stocks were crashing. Credit all around Wall Street was drying up because nobody knew how far or deep the reverberations from LTCM would run.

In four years, they had quadrupled their investors' money. They seemed to have the black box. Over the next month, they lost half their assets. And in the ensuing couple of weeks, they lost virtually all the rest. It was all over.

In four years, they had quadrupled their investors' money. They seemed to have the black box. Over the next month, they lost half their assets. And in the ensuing couple of weeks, they lost virtually all the rest. It was all over.

In four years, they had quadrupled their investors' money. They seemed to have the black box. Over the next month, they lost half their assets. And in the ensuing couple of weeks, they lost virtually all the rest. It was all over.

Bill McDonough, the president of the New York Federal Reserve, called in the 16 biggest banks.

Bill McDonough, the president of the New York Federal Reserve, called in the 16 biggest banks.

Bill McDonough, the president of the New York Federal Reserve, called in the 16 biggest banks.

But when the Fed calls you, you go, obviously. And he said, it's up to you guys. It's private money. But I don't want to see these guys fail chaotically. Is there a way that we can orchestrate their funeral, so to speak?

But when the Fed calls you, you go, obviously. And he said, it's up to you guys. It's private money. But I don't want to see these guys fail chaotically. Is there a way that we can orchestrate their funeral, so to speak?

But when the Fed calls you, you go, obviously. And he said, it's up to you guys. It's private money. But I don't want to see these guys fail chaotically. Is there a way that we can orchestrate their funeral, so to speak?

the Federal Reserve chief, had his thumb on their necks. And the other thing is they each had the comfort that no one potential investor would have had alone, which is, I'm not going in alone. So they could put in enough capital, presumably, to withstand more market moves against them. It took a group effort to staunch the bleeding.

the Federal Reserve chief, had his thumb on their necks. And the other thing is they each had the comfort that no one potential investor would have had alone, which is, I'm not going in alone. So they could put in enough capital, presumably, to withstand more market moves against them. It took a group effort to staunch the bleeding.

the Federal Reserve chief, had his thumb on their necks. And the other thing is they each had the comfort that no one potential investor would have had alone, which is, I'm not going in alone. So they could put in enough capital, presumably, to withstand more market moves against them. It took a group effort to staunch the bleeding.

I think it was better from a public policy, certainly, that there was no, you know, they didn't take money from food stamps and give it to LTCM.

I think it was better from a public policy, certainly, that there was no, you know, they didn't take money from food stamps and give it to LTCM.

I think it was better from a public policy, certainly, that there was no, you know, they didn't take money from food stamps and give it to LTCM.

That would sound worse. But I think from the standpoint of the example it set for markets, it didn't make, you know, much difference whatsoever.