[Tyler_JC]

$this->bbcode_second_pass_quote('Sys1', 'C')id_Yama : Wow! Even the super richs are hurt by the crisis...

[EnergyUnlimited]

$this->bbcode_second_pass_quote('Tyler_JC', '
')If you work in the post office, it doesn't really matter what happens to the stock market or the economy as a whole.

[ReverseEngineer]

$this->bbcode_second_pass_quote('Cid_Yama', 'A')ctually, just like the average American, the wealthy are in debt, only more so. Those living off investments have had their income curtailed. So a lot of what ever they are able to save of their investment will be going to maintain living standards and paying down debt just like everyone else.

<b>Pawnshops pocket Picassos, Porsches and platinum as Beverly Hills feels pinch</b>

The worse the economy gets, the better it is for Jordan Tabach-Bank. "Business is booming," says the chief executive of Beverly Loan in Beverly Hills, California.

[JJ]

$this->bbcode_second_pass_quote('Tyler_JC', '')$this->bbcode_second_pass_quote('Sys1', 'C')id_Yama : Wow! Even the super richs are hurt by the crisis...

[Twilight]

$this->bbcode_second_pass_quote('ReverseEngineer', 'A')n interesting corollary to this would be the question of how Hollywood will go about financing its movies with the credit squeeze? In the Great Depression the film industry thrived of course, and movie stars lived high off the hog. But of course in those days there were still deep pockets around to finance the movies.

[Cid_Yama]

Patience said:

<i>Sat Nov 08, 2008 7:07 pm - Dow futures at 8450, down 324 at the moment<i>

Dow futures now up 228.19

Looks like they are making good use of the weekend so as not to upset the markets.

[Cid_Yama]

All day long the propaganda meisters did their best to play down the hedge fund threat. Their mistake is they talked about it <b>all day</b>, drawing people's attention to it.

[shortonoil]

Cid_Yama said:

$this->bbcode_second_pass_quote('', 'A')ll day long the propaganda meisters did their best to play down the hedge fund threat. Their mistake is they talked about it all day, drawing people's attention to it.

[Cid_Yama]

I guess you missed the point. If they wanted people not to look they needed to quit pointing.

[shortonoil]

Cid_Yama said:

$this->bbcode_second_pass_quote('', 'I') guess you missed the point. If they wanted people not to look they needed to quit pointing.

[gnm]

$this->bbcode_second_pass_quote('JJ', 'm')y wife cleans houses under the table...one of the homes she cleans is for a lady who works for the post office. she told bing she won't be needing her any more as they laid off half the employees and reduced her hours from 50 to 34 per week...the check she gave Bing bounced and 7 dollar service charge for bad check....(but under the table, so what, right?)

[Cid_Yama]

<b>Hedge-Fund Assets Shrink by $100 Billion Last Month</b>

The global hedge-fund industry lost $100 billion of assets in October, according to an estimate from Eurekahedge Pte, as firms including Sparx Group Co. were hammered by investor withdrawals.

The biggest market losses since the Great Depression and investor withdrawals hurt the $1.7 trillion hedge-fund industry that manages largely unregulated pools of capital. The index of global funds has lost 11 percent this year, set for the worst performance since 2000 when Eurekahedge began tracking the data.

"As both hedge-fund managers and fund of funds scramble to meet client redemptions, one thing is clear: the industry is going to shrink substantially over the coming months, perhaps as much as 50 percent in terms of both assets under management and number of funds,'' said Kostas Iordanidis, head of hedge funds at Geneva-based Unigestion Holding SA, which invests $3.2 billion in hedge funds worldwide.
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[ki11ercane]

$this->bbcode_second_pass_quote('gnm', '')$this->bbcode_second_pass_quote('JJ', 'm')y wife cleans houses under the table...one of the homes she cleans is for a lady who works for the post office. she told bing she won't be needing her any more as they laid off half the employees and reduced her hours from 50 to 34 per week...the check she gave Bing bounced and 7 dollar service charge for bad check....(but under the table, so what, right?)

[EnergyUnlimited]

$this->bbcode_second_pass_quote('ki11ercane', '
')As time passes and the economy worsens and your governments at any level find it harder and harder to get revenue you'll find even petty amounts being challenged either by the law or by force.

[skeptik]

$this->bbcode_second_pass_quote('Tyler_JC', '')$this->bbcode_second_pass_quote('Sys1', 'C')id_Yama : Wow! Even the super richs are hurt by the crisis...

[wisconsin_cur]

$this->bbcode_second_pass_quote('skeptik', '')$this->bbcode_second_pass_quote('Tyler_JC', '')$this->bbcode_second_pass_quote('Sys1', 'C')id_Yama : Wow! Even the super richs are hurt by the crisis...

[ReverseEngineer]

$this->bbcode_second_pass_quote('wisconsin_cur', '')$this->bbcode_second_pass_quote('skeptik', '')$this->bbcode_second_pass_quote('Tyler_JC', '')$this->bbcode_second_pass_quote('Sys1', 'C')id_Yama : Wow! Even the super richs are hurt by the crisis...

[Quinny]

RE - For all you're dramatic prose unfortunately I think you may be..
Wait for it..
well...

right.

[EnergyUnlimited]

$this->bbcode_second_pass_quote('ReverseEngineer', 'G')iven that many of your "richest" folks own companies with huge liabilities, as the system crashes, they would effectively turn into the world's biggest debtors.

[Cid_Yama]

<b>What Sparked the Selloff</b>
<i>Heavy forced selling by highly leveraged hedge funds is partly to blame for the recent market bloodbath.</i>

As their own businesses fell apart, investment bankers and brokerages called in loans to many hedge funds. When stocks plunged, hedge funds got more and more margin calls, forcing them to sell more and more stocks -- setting off a vicious cycle.

How much of October and early November's market breakdown had to do with forced selling by hedge funds? We'll never know precisely, but my guess is that it was a major contributor. As the market decline became more intense, correlations between different kinds of investments increased markedly. Thus, hedge funds that invest in commodities or real estate suffered as badly as did hedge funds that invest in stocks. Everything went down -- and forced selling by hedge funds fueled the conflagration.

What of the future? Many hedge funds have already folded, and more will follow. I, personally, see no reason for the industry to continue to exist. Alan Greenspan argued years ago that hedge funds would bring more liquidity to the markets -- that is, make it easier to buy and sell securities without disturbing their prices. In fact, they did exactly the opposite. They brought record volatility and helped spark a market implosion that imperils our financial system and our economy.
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