USA- 1998 : THE CRACK OF THE LTCM MEGA-FUND WAS ABOUT TO TURN THE ENTIRE CAPITAL SYSTEM!!

# THE 23 September 1998 the President of the FED (Federal Bank) American - in spite of the free market – has effectively expropriated the Hedge Fund Ltcm, a stock market mega-hedge fund managed by “best brains in finance”: THE 90 % of the capital – including 100 million dollars from the Bank of Italy – has been “sold” For 1 dollar a 14 of the world's leading banks, and the latter were forced to immediately pay more 6.000 billions of lire to try to patch up the most colossal one “hole” of history. “If the Fed hadn't intervened… there would be… a global financial crisis, with repercussions that are difficult to assess “(The sun 24 hours,5-1O-’98). The Milan Stock Exchange in a few days had fallen by 40 %!

Only with the crack dell’ Ltcm the Merril Lynch (first US bank) he lost 1.400 Millions of dollars, UBS Switzerland (first bank in Europe) 770 ( = 1.300 billion lire, with the resignation of president Ciavalletta), huge losses for all the others (Dresdner e Deutche Bank, Paribas, the English Barclays, the Japanese Sumitomo, the American Citycorp,etc..)

The ladies in those weeks kept silent about the PENSION FUNDS,especially Americans and British: no precise data was released so as not to frighten the workers. The upheaval was certainly crazy, also because “the borders between banks, financial, funds and insurance are now unstable” (statement by Soros king of speculators, a llSole24ore,30-10-’98) This time too things went well for Lorsignori : the massive interventions of the central banks of the major capitalist countries and the “medicine” of the war made the big stock market restart and profits. Until the next crash.

L’ Ltcm failed due to the crisis in Japan and - above all- of Russia, not foreseen by mathematical systems ” computerized by financial brains “of stellar reputation” who managed the mega-fund.

cobasalfaromeo,28-5-99 http://spazioinwind.libero.it/cobas/finanzaloro/crackltcm.htm