Hedge Funds

[BlasterBates]

Hedge funds

hmm

[Peoplesoft bloke]

Is this related to the lawn mower thread?

[AtW]

"One of the main problems experienced by hedge funds is the extent of leverage in the industry. The funds were able to take on huge amounts of debt, with little capital needed as security, to boost returns. One observer said some of the leveraged strategies were like "picking up pennies in front of a steamroller, and that only takes a turn in the market to cause severe problems"

These huge leverages should have been banned long time ago - in fact banks were unable to use those leverages because of capital requirements, so they offloaded them into hedge funds who were very poorly (if at all) regulated. Look at shady companies used by Northern Rock who held billions of debt papers while being located in offshores or outside of normal regulation. That's what was driving crazy asset bubble in the last decade - the most astonishing thing is that those people who run hedge funds thought of themselves like they were some kind of Buffets or something

[snaw]

"One of the main problems experienced by hedge funds is the extent of leverage in the industry. The funds were able to take on huge amounts of debt, with little capital needed as security, to boost returns. One observer said some of the leveraged strategies were like "picking up pennies in front of a steamroller, and that only takes a turn in the market to cause severe problems"

These huge leverages should have been banned long time ago - in fact banks were unable to use those leverages because of capital requirements, so they offloaded them into hedge funds who were very poorly (if at all) regulated. Look at shady companies used by Northern Rock who held billions of debt papers while being located in offshores or outside of normal regulation. That's what was driving crazy asset bubble in the last decade - the most astonishing thing is that those people who run hedge funds thought of themselves like they were some kind of Buffets or something

AtW.

Give it a rest please, no one gives a toss what you think and newsflash - neither the financial markets or the FSA or anyone else for that matter either.

[AtW]

AtW.

Give it a rest please

Tell it to BlasterBates - he posted it

[snaw]

Tell it to BlasterBates - he posted it

Nah, his post was fine - it's your on going commentary on anything finance related that's getting very tedious.

[AtW]

Nah, his post was fine - it's your on going commentary on anything finance related that's getting very tedious.

I am glad to hear it winds you up, thanks for letting me know.

[snaw]

I am glad to hear it winds you up, thanks for letting me know.

Dude, it winds me down. It's like prozac. Except it lasts longer. I'd rather listen to Alistair Darling do an extended version of last years budget

[AtW]

it winds me down.

Sure it does. I'll post more of my financial comments and views then

[snaw]

Sure it does. I'll post more of my financial comments and views then

Vogon logic if ever I heard it.