Posted on 05/12/2005 3:51:36 AM PDT by TigerLikesRooster
Neither Dubya nor Rumsfeld can take care of them. He can get rid of Nuke/Bio/Chem(NBC.)
>>If somebody inadvertantly steps on any of them, everybody in the world will surely know about it and feel the resulting pain.
it will be temporary fopr mom and pop. those who invest in these devices can, no doubt, stand the loss.
If much of the financial system goes down, mom and pop can also feel the pain even if they invest nothing on those device.
It's been estimated that the total value of all derivative securitues extant is some 100 x greater than that of the underlying stocks and bonds..
Then, if they're shorting stocks, that would constitute naked shorting.
Many smaller hedge funds are fininaced by 'funds of funds'. But now, those funds are also funded the same way. So you have fund of fund of fund of fund of fund of fund of fund of funds. This isn't a healthy situation.
Like I said, it won't effect the larger funds because they don't get money in that way, but all of you who have cousins or freinds from college who have set up their own hedge fund and are running less than 2 billion dollars should be very nervous. They may have their funding pulled suddenly as a result of an event they had nothing to do with.
I'ts already happened on a small scale and I've had freinds who were effected. but now there is a great deal more leverage in the community so it has the potential to spread.
Will the evil, demented powers-that-be on the world stage submit to a higher authority in the very near future?
Moshiach and a modern-day Solon, with help from a top team of course, should be able to sort out the world's financial affairs and facilitate world peace over the coming decades.
Apparently at least one large hedge fund went short GM stock and long GM bonds. Both recently got splattered FWIW.
If there will be such an entity, it won't be a country, but a transnational organization. I am not sure it will succeed, but there will be people who will give it a try anyway.
This is all a scare tactic to bring hedge funds under SEC control--Uncle Sam will win and hedge funds will be regulated =-(
What is the ratio between aggregate size of big funds and that of small funds?
That's no "hedge" -- that is, in fact, what card players call "doubling down". Both are bets against GM.
In that way its kind of like portfolio insurance (which caused the 87 Stock market crash) it's not a problem until everyone does it.
Thanks for your insight. You have been really helpful.
Thank you. Precisely! Lierals [liberals] are still in the last millennium with their obsession to control everything.
Flux is rewriting all the rules--except for Greed and Fear...
If you would, point me in the right direction of these stats.
Regards.
Did you read my entire comment? I said very plainly that I don't have any stats and I dson't think anyone else does either. That sentence you quoted was to shed light on the previous poster's question about the ratio's and how I felt they didn't matter.
"Multibillionaire Warren Buffett is no fan of hedge funds. Or so he said. At the recent annual meeting of the corporate giant he heads, Berkshire Hathaway, Mr. Buffett said hedge funds are a potential threat to the stability of global markets. From Thursday's New York Sun: "Mr. Buffett has invested $620 million of Berkshire Hathaway's money in a hedge fund run by the son of a close family friend." Warren, Warren, Warren.
I thought this was interesting :~)
You said something rather profound. The conspiracy just might not be a theory, just because those who wonder are called names by those who throw their heads back while they call names.
Bet the stats are out there...
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