Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (23923)	12/31/2004 10:58:04 AM
From: russwinter	Respond to of 110194

Corporations are buyers too, they use corporate funds (or borrowings) to pad the pockets of option holders and insiders who in turn sell. More rackets going on now days than you can shake a stick at.

To: ild who wrote (23923)	12/31/2004 11:15:00 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

Doug Gillespie excerpt on hedge funds: Something I think you can attribute it to, at least partially, is the creed of greed that is driving many of the thousands of hedge funds that are trying desperately to recoup some lousy performance in a mere couple months. The thousands of hedge funds that do exist but shouldn't. And, in due course, many of which likely will no longer exist. There's certainly nothing wrong with hedge funds. Actually, there is plenty right with them, just not in the numbers to which they have grown. As was the case with too many mutual funds a few years back, the time of a substantial contraction in the number of hedge funds draws ever closer. Of course, the huge difference between the two vehicles -- hedge funds and mutual funds -- is hedge-fund leverage and the danger it poses to the financial system. If according to none other than Alan Greenspan the failure of Long-Term Capital Management a few years back posed a "systemic risk," what, in the aggregate, does today's plethora of hedge funds pose? Ironically, a plethora that has put in place some very serious systemic risk that not only been hugely encouraged but also enabled by none other than -- "Maestro" Greenspan! Which I believe creates a couple more themes for next year and going forward, to wit: (1) Are the large number of abhorrent (as opposed to the far smaller number of totally responsible) hedge funds going to be allowed to further jeopardize the functioning of US and world capital markets? (2) When the hedge-fund debacle begins to unfold in earnest, will more people finally come to realize that this guy Greenspan simply is not and never was all that his sycophants cracked him up to be?