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Gold/Mining/Energy : Casavant Mining Kimberlite International (CMKM)
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To: StockDung who wrote (2324)7/12/2006 9:49:01 PM
From: rrufff   of 2595
 
Why are the old "crusaders" so quiet in the face of this?

The potential harm that hedge funds can inflict on other market participants has no real limits. Hedge fund trading now dominates the nation’s capital markets. The $1.2 trillion under hedge fund management are on steroids. They recycle at high velocity through the markets. With that $1.2 trillion, hedge funds execute up to fifty percent of the daily trading on the $21 trillion New York Stock Exchange. They also do seventy percent of the trading in the US distressed debt market, US exchange-traded fund market and the convertible bond market. The same picture is emerging in the derivative markets. Patrick Parkinson of the Federal Reserve recently testified at a Senate hearing: “The active trading by hedge funds has contributed significantly to the extraordinary growth in past years in the market for derivatives (emphasis added).” So far, hedge funds have dominated these markets with only $1.2 trillion under management. But that is changing too. The SEC projects the hedge fund asset base will increase from $1.2 trillion to $6 trillion by 2015.

Hedge fund trading generates huge commissions and fees to investment banks and brokers. That revenue flow gives hedge funds influence with both brokers and investment banks. The Economist examined this growing influence in an article last year:

http://judiciary.senate.gov/testimony.cfm?id=1972&wit_id=5485
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