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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (75505)	8/24/2001 10:28:20 PM
From: d:oug	Read Replies (1) \| Respond to of 116764

Friday, 24 August, 2001- Hedge fund threat news.bbc.co.uk Friday, 24 August, 2001, 16:59 GMT 17:59 UK Hedge fund threat Some believe investors should be bailing out of the US market. Remember the shock to the world's financial system when the LTCM hedge fund faltered? The BBC's Rodney Smith reports on rumours that another nasty shock could be just around the corner. A large hedge fund may be in trouble. That is the story circulating a few days ago..... Subj: BBC News - UK Hedge fund threat Date: 8/24/01 From: LePatron @ Le Metropole Cafe ... trader described is at "astonishing", another described it as like the Russian economic and banking crisis in 1998. ... hedge fund business has grown exponentially since the dot.coms imploded, as the fast buck brigade has shifted from tech stocks to derivatives. ... these are little more than computerised extensions of day-traders... ... the managers running these funds are dangerously short on experience while handling billions of dollars. ... unsophisticated fast buck makers. The same people who precipitated the tech and dot.com bubble. They could do the same with derivatives... ... like John H Mesrobian at Constantinople Advisers, believe investors should be bailing out of the US market, where the bubble would be likely to burst first, and should be selling the dollar and buying the euro, and gold. It is the oldest hedge of all, but the gold market is overrun with visionaries convinced that there is a producer and central bank conspiracy to cap the gold price. Like the modern derivatives market, it can be difficult to separate fact from fiction here too. But these are the market professionals who believe that a hedge fund Krakatoa may be about to blow. The Federal Reserve would possibly not see it in time, and unlike LTCM, when the US central bank averted a disaster, it could be overwhelmed by the sheer scale of a new crisis. The everyone would be covered in toxic dust. -END- All the best, Bill Murphy Chairman, Gold Anti-Trust Action (GATA) Le Patron, Le Metropole Cafe