What caused the downturn, and eventual dissolution, of Long-Term Capital Management LP.? O The 1997 Russian default caused a significant rise in U.S. Treasury Bonds, which LTCM was significantly short selling. O With the fall of the Soviet Union, Russia invested in the U.S. markets and destabilized the economy temporarily. O LTCM did not investments in Russian markets when they defaulted on their debts. O LTCM was lying to investors in an effort to inflate their stocks, which they then used to pay their employees in
What caused the downturn, and eventual dissolution, of Long-Term Capital Management LP.? O The 1997 Russian default caused a significant rise in U.S. Treasury Bonds, which LTCM was significantly short selling. O With the fall of the Soviet Union, Russia invested in the U.S. markets and destabilized the economy temporarily. O LTCM did not investments in Russian markets when they defaulted on their debts. O LTCM was lying to investors in an effort to inflate their stocks, which they then used to pay their employees in
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter31: The Impacts Of Government Borrowing
Section: Chapter Questions
Problem 3SCQ: In the late 1990s, the U.S. government moved from a budget deficit to a budget surplus and the trade...
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![What caused the downturn, and eventual dissolution, of Long-Term Capital Management LP.?
The 1997 Russian default caused a significant rise in U.S. Treasury Bonds, which LTCM was significantly short
selling.
O With the fall of the Soviet Union, Russia invested in the U.S. markets and destabilized the economy
temporarily.
O LTCM did not investments in Russian markets when they defaulted on their debts.
OLTCM was lying to investors in an effort to inflate their stocks, which they then used to pay their employees in
stock options.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad6c5dd2-bb9d-461f-a13f-dab74f01ec9d%2Ffa10f3ae-9eb6-44a0-be26-f114d551b59d%2Fo6k6jei_processed.jpeg&w=3840&q=75)
Transcribed Image Text:What caused the downturn, and eventual dissolution, of Long-Term Capital Management LP.?
The 1997 Russian default caused a significant rise in U.S. Treasury Bonds, which LTCM was significantly short
selling.
O With the fall of the Soviet Union, Russia invested in the U.S. markets and destabilized the economy
temporarily.
O LTCM did not investments in Russian markets when they defaulted on their debts.
OLTCM was lying to investors in an effort to inflate their stocks, which they then used to pay their employees in
stock options.
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