Reply #7: Timber!

[westerebus]

That last sound you did not hear was the floor falling away from what was left of the hedge fund community. You see comrades no one was there to actually hear the event. Most if not all the party functionaries left there positions a year ago. Profits secured in european currency accounts held on paper at least, somewhere above the warm waters of the Caribbean. The wealthy pay for advice as well as the comforts the party has come to cherish. Good citizens on the other hand, have to go on the luck of possibilities and third hand news.
Investment in good times is easy. Follow the herd and cost averaging work to gain par with the median return on investment. What if you wanted thrice par? Say a twenty percent return. Well if you knew which way a sector or class of investment was headed, you could bet with the house, so to speak. It's like knowing when that jack is going to show up and in whose hand. In this game you are betting with the inside deal. Same with hedge funds. They are market makers and market movers.
So what the of their losses? Just what have they lost? Actually it is whose money have they squandered that concerns us. Pension funds. City, state, county, union, association, MUTUAL FUNDs, are all at risk. Most bought in on the mid deal chasing profits. Smart, rather party ownership, money was getting up from the table having made their's, when the late comer's placed their bets.
The family ownership of the hedge funds be it investment houses or deregulated banks' subsidiaries own debt. Notes on margin and a lot of what ifs. Do you think it odd the second in command at the great white bunker has held bonds for most of his term? Preservation of capital. And just what is rising in yield? We can all rest better knowing the few are well off. The party is here for your investments.