Comments on: Mark-to-Market Accounting Is not the Major Problem http://alephblog.com/2008/03/21/mark-to-market-accounting-is-not-the-major-problem/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Mon, 13 Feb 2012 14:34:49 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Alan Matthews The Dean of Dracuthttp://alephblog.com/2008/03/21/mark-to-market-accounting-is-not-the-major-problem/comment-page-1/#comment-17313 Alan Matthews The Dean of Dracut Sat, 22 Mar 2008 03:59:07 +0000 http://alephblog.com/2008/03/21/mark-to-market-accounting-is-not-the-major-problem/#comment-17313 I agree with this, on target. Next LTCM seems to come up again and again. There are many good atricles on the company. Debt and Delusin mentins them. You mention them and others. What have we learned from LTCM is the issue. Excessive Leverage or extreme gearing is bad. If you are in the correct direction you can return tons of money to private investors if not wipe out.... That private investors can break a system especially if they are pushed from the sides. The State Reserve not the FEDs came in and made a plan with other investment banks. What we did not learn...The Feds need to regualte hedge funds to a point to prevent excess. Leveraging shold be limited to no more than 1:10 a 100 million should not leverage 3 billion. You are just asking for trouble. Last What i have learned Regulation is okay, deregulation is better but unregulated is just dangerous. Unregulated equals unknown. We are not done with this yet.... The Dean of Dracut I agree with this, on target.
Next LTCM seems to come up again and again. There are many good atricles on the company. Debt and Delusin mentins them. You mention them and others. What have we learned from LTCM is the issue. Excessive Leverage or extreme gearing is bad. If you are in the correct direction you can return tons of money to private investors if not wipe out…. That private investors can break a system especially if they are pushed from the sides. The State Reserve not the FEDs came in and made a plan with other investment banks.
What we did not learn…The Feds need to regualte hedge funds to a point to prevent excess. Leveraging shold be limited to no more than 1:10 a 100 million should not leverage 3 billion. You are just asking for trouble.
Last What i have learned Regulation is okay, deregulation is better but unregulated is just dangerous. Unregulated equals unknown.
We are not done with this yet….

The Dean of Dracut

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