Posted on 10/24/2008 7:32:28 PM PDT by TigerLikesRooster
Looming global recession will put thousands of hedge funds out of business
By Simon Duke
Last updated at 10:29 PM on 24th October 2008
Millions of savers and pension fund holders face huge losses on their investments as hedge funds feel the pain of the credit crunch.
Over recent years British pension and insurance funds have channelled big chunks of their money into the highly controversial ?1.3billion industry because big returns were promised.
But the growing turmoil on financial markets could obliterate up to a third of the industry's value.
An expected 'fire sale' of hedge fund assets will also put further downward pressure on stock markets, affecting the nine million Britons whose pensions are linked to share prices.
Hedge funds are relatively new and highly secretive companies, which invest the money of the super-rich and pension funds.
Unlike banks, they are unregulated and use cavalier investment techniques, such as betting that a share price is going to fall, to make their money.
The imminent collapse of so many funds is expected to unleash a fresh wave of panic on the world's stock markets.
Last night, Mark Dampier, of financial adviser Hargreaves Lansdown, said: 'It affects the man in the street.
'If you've got an endowment maturing, or you are coming up for retirement and need to buy an annuity, you will see your savings worth much less than before. Hedge fund de-leveraging is dragging the whole market downwards.'
(Excerpt) Read more at dailymail.co.uk ...
Ping!
Damn, I wish they were talking about the NYT, CNN and NBC.
Probably lay off a few workers as well ... That’s what recessions do, even one’s caused by Democrats.
China is going to have one heck of a problem finding work for all those junk toy builders.
Apparantly Senator Biden is in receipt of such information, although it might not be DPRK specific. Nevertheless, such foreign analyses would be very important right about now.
The poor hedge fund folks , send them to a island somewhere , oh yeah they already own all of them .
Oh, I think some of them will go down. Others will get some cash injection from liberal bigshots or government subsidy of some sorts if Obama is elected. It is also not a bad idea that some guy buys them and turn them into tabloids.:-)
No Problem! Just bail them out! Easy come easy go!
It is just a matter of time. We do have history on our side. The number of newspapers that were political outlets in the mid to late 1800s was astronomical. As soon as the editor realized he was losing more money than the business plan called for, the newpaper shut down its presses. Even an idiot is only going to lose a certain amount of money before calling it quits.
Maurice Strong is deeply saddened.
“they use techniques such as betting that a share price is going to fall, to make their money”
Just darn!
I was counting on these brave capitalist short sellers to provide a floor to the market when they covered their bets, weren’t you?
OH MY!
No, just give them the poison toothpaste made in the factory next door as a worker’s compensation payment.
And some, like the Bahamas and the Caymans, are already inhabited by those folks - since the offices are already there.
The government will not bail out hedge funds. Half of them will fail. But that is ok because half of them are not hedge funds at all but gambling schemes structured by 35 year old traders who drink too much, do too much coke, huckster people out of their money, have no conscience, are not risk adverse and figure so what if it blows up, I’ll just close down this fund and open up a new one across the hall in three months.
They give ADD and sweaty addictive behavior a bad name.
Somewhere on FR I read today that 2.7 million Chinese workers are going to be fired because of this downturn in the world economy.
LOL That was the article!
DIE HEDGE FUNDS DIE!
They can’t die soon enough.
The hedge fund workers will have to seek honest employenmte....like digging ditches or flipping burgers
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