what was originally called the Tye-Bot crisis and eventually reappeared as a schism in the Russian sovereign debt markets. And it turned out that this firm long-term capital management had been extremely long Russian debt against some other trades because they were a Stadar fund. And in order for Stadar funds and credit to be able to generate the size of returns that the partners expected, they need to take on a huge amount of leverage. So you have this massive amount of leverage on a bet that has gone horribly wrong. And who provides this leverage? Well, the major investment banks. And so since all these major investment banks are now so interconnected, they were in 1998, they're even more interconnected now, the Greenspan Fed identified that this could be a cascading financial catastrophe, and they stepped in and bailed out long-term capital management. There was another manifestation of this Fed put. And then we saw the real Fed put in 2008, which we've already hashed out. And so (28/45)
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