A great deal has been said about the rescue of Long-Term Capital Management, the highly leveraged hedge fund. Much of the commentary has been specious, which is unfortunate because the episode could serve as a springboard into some important issues and lessons.

The most inane comment I heard was from a television talking head. He labeled the "bailout" of Long-Term Capital Management the "outrage of the week." He acknowledged that no direct taxpayer money went into the bailout.

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