In some cases, assessments of LTCM’s creditworthiness was found to be less than adequate as a result of limited information on the fund’s true risk profile and risk management capabilities. In particular, exposure measures and scenario analyses that could have identified potential losses under stress situations were found to be less than adequate.
Significant differences, however, persist across different groups of workers and different areas of the country: Unemployment rates for African Americans and Hispanics are still well above the jobless rates for whites and Asians, and the proportion of the people with a job is lower in rural communities. Inflation continues to run below the Federal Open Market Committee’s (FOMC) symmetric 2 percent objective.