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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (30575)	5/22/2005 12:06:55 PM
From: mishedlo	Read Replies (2) \| Respond to of 116555

fleck [...] Despite the recent carnage, I continue to be very constructive on the outlook for the metals, especially given that the Federal Reserve is trapped. Short interest rates are now a whopping 3%, and folks can see the amount of pain that's already occurred in the financial community -- and we're not even close yet to the underlying rate of inflation. Consequently, no matter how I approach the process, I keep coming back to the same point: Eventually, all roads will lead to higher metal prices. moneycentral.msn.com

To: Crimson Ghost who wrote (30575)	5/22/2005 12:08:59 PM
From: mishedlo	Read Replies (2) \| Respond to of 116555

Rumor has it that chief executives are overpaid in America. Compared with the hedge fund managers, the C.E.O.'s may have a bad deal. ON average, according to Institutional Investor's most recent survey, the 25 best-paid hedge fund managers each took home $207 million in 2003, about double what they made a year earlier. That's $207 million in cash - not in equity or stock options. Meanwhile, the nation's 25 highest-paid chief executives each made an average of $37 million in total compensation last year, including options granted (but not those exercised), according to Business Week. Most hedge fund managers do make money for their investors. But even if a hedge fund manager doesn't make a cent for his investors, the manager invariably makes a fortune for himself. Think about it: just for showing up to work, the manager of a hedge fund with $1 billion in assets is guaranteed to earn $20 million a year in management fees alone. Why should he take any risks? Why should he alienate his cautious investors? If we add in his 20 percent cut of the gains, and assume that his returns last year were just average (in line with the S.& P. 500) he would have grossed a total of $41.8 million. Let's say that our hedge fund manager's office costs him $15 million a year. Bottom line: having done nothing exceptional, he would have pocketed a cool $26.8 million after expenses. Can you think of another business that works like that? nytimes.com