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 : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (33347)	4/18/2008 2:31:03 PM
From: elmatador	Respond to of 219051

Sovereign wealth funds grow to $3.3 trillion. Research suggests that by 2015, the funds will oversee more than $10 trillion in assets. Many of the largest funds are controlled by oil-rich countries like Norway and Gulf states. Asian countries such as Singapore and China, whose trade surpluses have built up big foreign exchange reserves, also oversee big sovereign funds, the FT said.

To: TobagoJack who wrote (33347)	4/18/2008 2:35:10 PM
From: elmatador	Respond to of 219051

Sovereign funds will save the world says top European fund manager By Philip Haddon \| 00:01:00 \| 12 April 2008 European investment veteran Christian Chambier, France’s most experienced fund manager, says that in 40 years in the job he has never seen a crisis as bad as today’s, but he expects sovereign wealth funds to come to the rescue. ‘I have seen 20 stockmarket crashes in 40 years, but I have never seen anything like this,’ he says. ‘Because for the first time this is not a stockmarket crisis but a financial crisis.’ ‘The whole world has huge growth,’ he says, citing Angola and its 12% annual growth as an extreme example. ‘But in front of all this growth around the world we have a financial system which is going broke.’ DECOUPLING! He agrees with the IMF’s claims that this is the worst time for markets since the Wall Street crash of 1929 and the Great Depression which followed. ‘But one of the main differences with 1929 is that the monetary authorities are speaking with each other, look at the Bear Stearns situation for example,’ he says. Another big difference is the huge amounts of cash in the hands of sovereign wealth funds. ‘Sovereign wealth funds have three trillion dollars and can use that money at any time to buy anybody. They could buy the whole French stockmarket in a day if they wanted to,’ he says. ‘In 20 years’ time our entire economies will be in the hands of these people. Look at the Abu Dhabi Investment Authority. Those people are profiting from this situation at the moment. They will salvage the world,’ he says. Some have questioned why such wealth funds would be interested in bailing out world markets, but Cambier thinks they will have little choice. ‘If they do not do it, the oil price will go to $20 a barrel and collapse. If we have a big world depression, the world will collapse and their economies will collapse too. That is why I think the worst has been seen.’ ‘A lot of money has been lost by a lot of people, but when you cheat you lose. And when you play a game, you can lose,’ he says. 63 year-old Cambier laments the lack of market experience among hedge fund managers, which could have helped avert the current situation. ‘Most people who work in hedge funds and the sophisticated instruments they use are too young,’ he says. ‘These are new instruments which have not been proven to be efficient in different circumstances. Also the people who have been running these instruments and hedge funds are too young, so they don’t know how to behave. They thought it was all a one way street.’ With his own funds, Cambier has taken an aggressive stance. ‘I am a strong buyer of everything,’ he says.‘Everyone is in cash so it is right time to be fully invested.’