Plymouth, Montserrat mud and lava would have been scorched and left completely non-arable by the heat of the pyroclastic flows. Plymouth was abandoned and the entire southern half of the island was declared an exclusion zone because of the continuing volcanic activity at the Soufrière Hills. The government of the island was moved to Brades, although Plymouth remains the "de jure" capital. , a new port and capital are under construction at Little Bay, on the island's northwest coast. The destruction of Plymouth caused severe economic problems for the island of Montserrat. Plymouth had been by far the largest settlement on the
Long-Term Capital Management The fear was that there would be a chain reaction as the company liquidated its securities to cover its debt, leading to a drop in prices, which would force other companies to liquidate their own debt in a vicious cycle. The total losses were found to be $4.6 billion. The losses in the major investment categories were (ordered by magnitude): Long-Term Capital was audited by Price Waterhouse LLP. After the bailout by the other investors, the panic abated, and the positions formerly held by LTCM were eventually liquidated at a small profit to the rescuers. Although termed a bailout, the