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Lorenzo Bini Smaghi, the director for international relations of the Italian treasury, which is responsible for negotiating euro issues with the Vatican, said: "It's a speculative position with the face of the pope.
One less-sweeping proposal would be to strengthen existing regulatory limits on the size of the stake that each speculative investor can hold in a given market, called speculative position limits.
"The bank is taking a speculative position by lending money on that property," said Thomas J. Waters, a housing-policy analyst who has taken a look at the real estate financing.
That is undoubtedly true, but from a wider perspective the key question is why Long-Term Capital was allowed to build up a speculative position so large that the firm's collapse could have threatened the prosperity of the entire country.
Without the enthusiastic support of the Wall Street establishment, there is no way that Long-Term Capital could have built up a speculative position so large that its collapse would have posed, in the words of William McDonough, the president of the New York Federal Reserve Bank, "unacceptable risks to the American economy".
The empirical results from Granger causality reveal that return lead speculative position, which indicates that non-commercial or managed money traders are a class of positive feedback traders or trend followers; and also reveal that the position changes held by speculative traders will cause crude oil price movement.
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Perhaps unorthodox monetary policy has encouraged unstable speculative positions.
But that figure substantially overstates the upward price pressure of those speculative positions.
When traders hold large speculative positions on commodities, wild price fluctuations can affect consumers.
"That they're holding such speculative positions, they should have had to report that to investors," he said.
Only 18 months ago Julian Robertson's Tiger Management had $22 billion in capital, and could leverage that capital into huge speculative positions.
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CEO of Professional Science Editing for Scientists @ prosciediting.com