

Second interview with the hedge fund manager - eru
http://nplusonemag.com/financial-meltdown

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ojbyrne
I love the jargon. "Brain Damage" means inconvenience. The meaning is apparent
to anyone who thinks for a living, but says it with drama.

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eru
About the Bear Sterns bailout:

"If you really look at what the Treasury and/or the Fed was doing, they know
that they have to protect the financial system from grinding to a halt, but
they don’t want to create a moral hazard as a result of people thinking
they’re going to get bailed out no matter what. So yes, there was a bailout of
the counterparties, but they needed to take Bear out and shoot it in front of
everybody. So they took it out, at a 2-dollar offer, all the senior management
is gone, and that’s the financial equivalent of taking the shareholders out
and shooting them."

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jmtame
Woops, trying to avoid a double post here--I left a comment on the "first"
thread about this.

