Posted on 10/14/2005 11:30:39 PM PDT by Travis McGee
Maybe people need to go to jail rather than being bailed out this time.
Most of the risk comes from perfectly legal actions.
It depends entirely on the purpose of owning the derivatives for the individual fund. [disclaimer: I manage a hedge fund]. First, there are many kinds of derivatives. The futures market is larger than the stock market. Those futures contracts are used for many purposes - primarily to transfer risk.
Admittedly, there are firms like the one in the article that use derivatives in a very risky manner. I objected primarily to the title, which painted dire consequences to all hedge funds. This was a small event in the grand scheme of things.
best, ampu
It can now be safely concluded that you have zero proof of it.
That has nothing to do with anything, moron. You know and I know that the big guys had inside track and inside info on the REFCO bust
LOL. You spout half-baked, unsubstantiated crapola and call me a moron?
Smooth.
I won't hold my breath waiting for you to post the proof you don't have that anyone with knowledge of the problems acted on that knowledge.
Thanks for the ping. This happened last Thursday I believe, and is only a portion of Refco dealings, and doesn't represent any segregated customer funds.
Guardian makes it sound extremely gloomy when in fact, it's just gloomy. :^)
Wasn't Sarbanes-Oxley supposed to protect us from this kind of thing?
LOL Are you a lawyer? My common sense level of proof is enough.
It can now be safely concluded that you have zero proof of it.
i dont know if refco cleared those trades, but it is VERY possible that was just a series of straddles put on by a local broker to facilitate a tax-deductible payoff by other locals. I cannot imagine it even got on the clearing firm's radar.
"The only ones who are really effected are the ones who owned REFCO stock. "
As well as the impressive liability the underwriters are going to be facing, along with the company itself.
It is amazing arrogant stupidity that ceo let this co. go public with this in the closet waiting to be found. This could have been handled internally as a private co. and they could still have tried to go public in a couple of years. As it is, the existing equity holders are in peril of a wipeout. Is this stock every going to trade without a Q again?
ping
Yes, probably right. My memory is certainly not good enough to remember the details.
Thanks, and I hope you'll chime in now and then on these financial shennanigans threads. If you do, please ping me.
Boy are you ever dense. Did you fail the bar exam so now you are a pretend lawyer?
You're a master of the 3rd-grade insult, but apparently not much else.
Tell us again all about gold being up $25 in the last 2 weeks.
LOL.
I love the internet. Where else would discussion of a hedge fund turn mean?
So gold is up 25 in the last two months instead. So I don't track gold like you do. So what ya big dope!
I owned physical gold and silver while that antiscumbag clown was still bing potty trained and it looks like he didn't take to it very well.
BOOKMARK for later ref
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