October 23, 2008

And the Great America Going Out of Business / Hedge Fund Liquidation Sale of 2008 continues


Leverage, fun on the way up, sucks on the way down.

Thank you Hank Paulson (at Goldman) and Chris Cox (at SEC). Yup, 40 to 1 ratios, sounds like a GREAT idea. FABULOUS idea!

Not.


The Hedge Fund Contagion

Stocks, bonds, and commodities will suffer as funds dump assets. Anyone with a 401(k) will get hit

Investors on Main Street have another reason to fear opening their brokerage statements: the rapidly shrinking hedge fund industry.

In the coming months, hundreds of hedge funds may shut their doors, sparking a massive fire sale on all sorts of investments. Just about anybody with a 401(k) or pension plan will feel the pain, since the sell-off will only exacerbate the plunge in stocks, bonds, and commodities—which make up the core of most people's portfolios.

9 comments:

Mammoth said...

So, the Hedgies are selling all their Gold, which is why the price of this yellow metal is falling?

k.w. - Southern Ca. said...

And to keep the losses accelerating for the next generations, Bernanke/Paulson want to keep injecting a continual flow of devaluating taxpayer dollars into this corrupt system.

As the economic crisis broadens across the globe, our government employees hide their heads further into the sand.

Alan Greenspan states he never realized how far reaching this problem would get - what bullox - he helped engineer this collapss from the very beginning.

Get your popcorn folks, the show's just getting started.

JaneZ said...

Gold price plummets again as hedge funds rush for the exits
Posted by: Aaron Pressman on October 23

http://tinyurl.com/6ma4s7

First, they came for the gold and the miners, then they came for the 401k's, then they came for the IRA's, now they come for the pensions, and then SS. Mission accomplished.

Pension funding problems grow
By Sue Kirchhoff,
Stephanie Armour and Chris Woodyard, USA TODAY

The latest high-profile case illustrates what Bradley Belt, executive director of the federal Pension Benefit Guaranty Corp., which insures traditional pension plans, calls severe stress in the U.S. pension system.

This would be pensions of Boeing, Lockheed, GM, Ford, and the rest of the S&P and Dow.

http://tinyurl.com/dv54j

But the bright spot on a cloudy day is:

Greenspan: I Was 'Partially' Wrong On Credit Crisis

and if that doesn't finish you off, how about:

U.S. Banks Still Aren't Lending
Business Week today:

Despite the federal government's best efforts, banks are hoarding cash. It may be 2010 before the credit climate improves

Got seeds?

Mammoth said...

“First, they came for the gold and the miners, then they came for the 401k's, then they came for the IRA's, now they come for the pensions, and then SS.”

“Got Seeds?”
------------------
Just let them TRY to come for my land, garden, fruit trees, and my knowledge about producing food!

Now is the time to learn all that you can about being self-sufficient. That’s ALL the $700B bailout bought us – more time to prepare. Remember the Aesop’s fable about the Grasshopper and the Ant…
-Mammoth

p.s. Jane, the Hedge/Gold link “http://tinyurl.com/6ma4s7” didn’t work.

Nevada is Burning said...

40-1 leverage!?? That is SOOO 2006. The new method is to go down to the nearest casino and put all their investors money on black(minus fee's and bonuses) at the roulette table. Here they can truly score big and garner triple digit profits. Place your bets, round and round, where it stops no one knows...

I hope all hedge funds burn!

Anonymous said...

.




CAN WE ALL AGREE THAT THOSE EXORBITANT OIL PRICES FROM LAST YEAR WERE ALL SPECULATION? THE SAUDIS WERE RIPPING US OFF THROUGH HEDGE FUNDS. HOW COME OIL WENT FROM $154 TO $67 IN LESS THAN A YEAR? HIGH DEMAND AND SHORTAGE MY ARSE.



.

Anonymous said...

Does anyone know the best way to buy gold paper without being exposed to the short freaks?

www.slycapital.com said...

How are they hedge funds when they were completely unhedged?
Actual hedge funds have made out like bandits this year.
Any fund that lost money in September deserves to go bust.

Out at the peak said...

Luckily, two weeks before the crash, I moved all my 401K to "Stable Value" which just has $1 unit value that never goes up or down.
The 401K report only shows -8% while my coworkers have -40%+.

I should have done the same with my stock portfolio. Although I'm still up 13%.

I made (realized gains) of $400 today by day trading HTE and MSFT (long). I don't think I will buy and hold for a long time.