Skip to comments.It Has Started: Wall Street Preparing For Doomsday Scenario (Fund managers in Crisis Mode)
Posted on 07/21/2011 1:44:46 PM PDT by SeekAndFind
If you're simply looking at their public statements, Wall Streeters seem to be alarmed about the debt crisis, but don't appear to be sliding into panic mode.
In fact, they're just really good actors.
Across the financial sector, many are preparing for a debt doomsday scenario, in which the U.S does in fact default, the New York Times reports.
Firms are "taking steps to reduce the risk of holding Treasury bonds or angling for ways to make profits from any possible upheaval."
It's clear hedge funds have changed gears and many are in heavy de-risking mode, with billion dollar firms like Moore Capital and Soros Fund Management moving their flagships into majority cash.
This was a tactic implemented by a ton of hedge funds when the financial world imploded in 2008 -- so it's a very big statement on how bad they think things may get.
While "hedge funds are stockpiling cash so they can buy up United States debt if other investors flee," banks are looking hard at their treasury holdings and mutual funds "are working on presentations to persuade their boards that they can hold the bonds even if the government debt is downgraded," the NYT reported.
(Excerpt) Read more at businessinsider.com ...
Cash is king.
Treasuries and interest will be paid, by law, with lots of money left over.
One has to chuckle when told of “backed by the full faith and credit of the United States Government.”
Wall street loves big market flucuations. They make a ton of money no matter which way the market goes.
This is an opportunity to do something I don’t think anyone thought of yet.
Break George Soros.
It is the perfect time for conservatives in the house to get with their people in business and do something. Bagging a big lib would be a great trophy on the wall.
Posted here this morning
And yet the DOW soared over 100 pts today. Got a love “the Street”.
150+ point gain today in preparation of that doom and gloom scenario? =.=
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