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 of a large loss, like the payouts from selling an out-of-the-money naked call option. After the bailout, Long-Term Capital Management continued operations. In the year following the bailout, it earned 10%. By early 2000, the fund had been liquidated, and the consortium of banks that financed the bailout had been paid back, but the collapse was devastating for many involved. Mullins, once considered a possible successor to Alan Greenspan, saw his future with the Fed dashed. The theories of Merton and Scholes took a public beating. In its annual reports, Merrill Lynch observed that mathematical risk models "may provide a