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Long Term Capital Management was bailed out. https://en.wikipedia.org/wiki/Long-Term_Capital_Management https://en.wikipedia.org/wiki/Long-Term_Capital_Managem

Long Term Capital Management was bailed out. https://en.wikipedia.org/wiki/Long-Term_Capital_Management https://en.wikipedia.org/wiki/Long-Term_Capital_Management

selectodude 5y ago
By other banks. Not the taxpayer.
- Ericson2314 5y ago
  Still, ain't like the banks are going to bail out regular people for making some stupid investment.
  - mason55 5y ago
    I'm not sure of the actual point of this whole thread, but regular people make bad investments and get bailed out all the time: it's called bankruptcy.
    - Ericson2314 5y ago
      Bankruptcy hurts more because no limited liability. And when the other bailouts are more like "refinancing" as the other reply points out, the institutional bailouts hurt even less.
  - xkjkls 5y ago
    They do all the time. Every mortgage refinance is a bailout by the same conception that you are using.
    - Ericson2314 5y ago
      There are refinances but there is also good ol' foreclosure. How many rich financiers have actually "lost everything"? Coperate limited liability + allowed to leverage more + your friendly competitors bail you out is a suspicious combo, even if each of those in isolation is totally fine.
- omgwtfbyobbq 5y ago
  Under supervision of the Fed. https://en.wikipedia.org/wiki/Long-Term_Capital_Management https://en.wikipedia.org/wiki/Long-Term_Capital_Management
- cronix 5y ago
  How about this? > “This bailout is for the honest, hard-working hedge fund people who should be assured of making money,” said Biden today. > “We spent trillions of taxpayer’s money to bail out giant financial institutions who finally had their irresponsible business practices come back to bite them, and it’s only fair we do the same in this latest crisis.” > “So, it’s only fair that these hedge funds, who once again were more irresponsible with money be helped out by the taxpayer without repercussion.” > Biden revealed that the trillion-dollar package is set to be rolled out in the coming weeks with no demands for greater regulation or change to business practices. https://www.betootaadvocate.com/world-news/democrats-announces-trillion-dollar-bailout-for-hedge-funds-burnt-by-gamestop-financial-crisis/ https://www.betootaadvocate.com/world-news/democrats-announc...
  - selectodude 5y ago
    That article is what we in the biz call “satire”.
xadhominemx 5y ago
It wasn’t really bailed out. Equity investors lost all their money. Banks bought the assets at depressed valuations and made enormous profits. Kind of the opposite of a bailout in many ways.
dangerboysteve 5y ago
There was a great PBS Nova episode on that. Black-Scholes don't fail me know... until it did. No video but a link to the dvd purchase https://www.pbs.org/wgbh/nova/teachers/programs/2704_stockmar.html https://www.pbs.org/wgbh/nova/teachers/programs/2704_stockma...
- canadianfella 5y ago
  > Black-Scholes don't fail me know... until it did. What does this sentence mean?
paulpauper 5y ago
the investors lost everything. it is like a margin account that goes from +$30k to -$30k. the bailout gets it to zero. investors still losse everything.
xkjkls 5y ago
LTCM wasn't bailed out, all the investors in it got screwed. Banks took 90% control of all of their assets, and the 10% that was left to the original capital managers was still far less than many of the debts accrued.
- xkjkls 5y ago
  I suppose this really calls into question, what bail out means to you. If we label every private company transaction for a struggling company as a bail out, rather than the traditional one where only ones where the government steps in, then it's almost impossible for anything to not get bailed out.

Long Term Capital Management was bailed out. https://en.wikipedia.org/wiki/Long-Term_Capital_Management https://en.wikipedia.org/wiki/Long-Term_Capital_Management

selectodude 5y ago

By other banks. Not the taxpayer.

Ericson2314 5y ago
Still, ain't like the banks are going to bail out regular people for making some stupid investment.
- mason55 5y ago
  I'm not sure of the actual point of this whole thread, but regular people make bad investments and get bailed out all the time: it's called bankruptcy.
  - Ericson2314 5y ago
    Bankruptcy hurts more because no limited liability. And when the other bailouts are more like "refinancing" as the other reply points out, the institutional bailouts hurt even less.
- xkjkls 5y ago
  They do all the time. Every mortgage refinance is a bailout by the same conception that you are using.
  - Ericson2314 5y ago
    There are refinances but there is also good ol' foreclosure. How many rich financiers have actually "lost everything"? Coperate limited liability + allowed to leverage more + your friendly competitors bail you out is a suspicious combo, even if each of those in isolation is totally fine.
omgwtfbyobbq 5y ago
Under supervision of the Fed. https://en.wikipedia.org/wiki/Long-Term_Capital_Management https://en.wikipedia.org/wiki/Long-Term_Capital_Management
cronix 5y ago
How about this? > “This bailout is for the honest, hard-working hedge fund people who should be assured of making money,” said Biden today. > “We spent trillions of taxpayer’s money to bail out giant financial institutions who finally had their irresponsible business practices come back to bite them, and it’s only fair we do the same in this latest crisis.” > “So, it’s only fair that these hedge funds, who once again were more irresponsible with money be helped out by the taxpayer without repercussion.” > Biden revealed that the trillion-dollar package is set to be rolled out in the coming weeks with no demands for greater regulation or change to business practices. https://www.betootaadvocate.com/world-news/democrats-announces-trillion-dollar-bailout-for-hedge-funds-burnt-by-gamestop-financial-crisis/ https://www.betootaadvocate.com/world-news/democrats-announc...
- selectodude 5y ago
  That article is what we in the biz call “satire”.

xadhominemx 5y ago

It wasn’t really bailed out. Equity investors lost all their money. Banks bought the assets at depressed valuations and made enormous profits. Kind of the opposite of a bailout in many ways.

dangerboysteve 5y ago

There was a great PBS Nova episode on that. Black-Scholes don't fail me know... until it did. No video but a link to the dvd purchase https://www.pbs.org/wgbh/nova/teachers/programs/2704_stockmar.html https://www.pbs.org/wgbh/nova/teachers/programs/2704_stockma...

canadianfella 5y ago
> Black-Scholes don't fail me know... until it did. What does this sentence mean?

paulpauper 5y ago

the investors lost everything. it is like a margin account that goes from +$30k to -$30k. the bailout gets it to zero. investors still losse everything.

xkjkls 5y ago

LTCM wasn't bailed out, all the investors in it got screwed. Banks took 90% control of all of their assets, and the 10% that was left to the original capital managers was still far less than many of the debts accrued.

xkjkls 5y ago
I suppose this really calls into question, what bail out means to you. If we label every private company transaction for a struggling company as a bail out, rather than the traditional one where only ones where the government steps in, then it's almost impossible for anything to not get bailed out.