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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (116168)	10/4/2008 4:03:38 PM
From: vegetarian	Read Replies (1) \| Respond to of 132070

Hi Mike do you see a problem for hedge funds with stock market volatility, that is if they start in a direction counter-intuitive to many? what would be a fall-out from such problems for hedge funds? if many of them die how much of counter-party risk would that propagate in the financial system? could they be the next shoe to drop? Also what do you think about safety of ETFs in terms of the stability of issuing institution? there are too many ETFs and hedge funds to feel comfortable...my suspicion is ETFs issued by Lehman are dead, so even if one is right about direction of market and selection of ETF, would it be significant risk that the issuing institution just vanished in the meltdown handing an empty bag to the investor? then there is also govt which can't tolerate even normal corrections on asset prices (stocks/home values based on their propaganda to save main street's 401K, may be main street has too much in stocks if they are so jittery) and in their infinite wisdom may decide to ban shorting at will...I would feel comfortable holding Vanguard ETFs (May be a false comfort) but not sure how I should feel about ETFs issued by Barclays/UBS and other companies whose stories we don't know...any thoughts? Thanks