I don't care much about the investors

Post #289,412 by JayMehaffey 7/19/07 12:53:36 PM Reply	I don't care much about the investors Investors in hedge funds are rich folk willing to take big risks to make big money, or they ought to be. I'm worried about the side effects, Long Term Capital Management crashed so hard, so fast there where worries it might take the US economy with it. Because of their tendency to be heavily leveraged and own many different risky investments, a hedge fund can do a lot of damage when it goes down. I also think it is interesting just how much money they managed to lose on home mortgages. Quite a few fund, not all of which are hedge funds, are going to lose a lot of money over them. Jay
Post #289,422 by tonytib 7/19/07 2:13:21 PM Reply	Better to crash sooner than later and, yes, the BS hedgie crash will have impact...for one, it will lead to repricing of assets in other funds. But people need to reminded of the very real risks, or speculation gets out of control. That's why, although I'm not a big fan of the Chinese government, I think their efforts to try to squash their bubbles in real estate and the stock market are smart. If the US stock market had crashed in 1999, it would have been less painful. If the US real estate market had peaked in 2003 (when it would have except for mortgage "innovations"), it would have been a lot less painful it will be. --Tony
Post #289,425 by a6l6e6x 7/19/07 3:16:57 PM Reply	Total sub-prime mortgage losses are in the $50-100 B range. Alex Nobody has a more sacred obligation to obey the law than those who make the law. -- Sophocles (496? - 406 BCE)
Post #289,433 by bepatient 7/19/07 5:24:21 PM Reply	Those are estimates and real losses depend on the impact on home prices. The assets against those loans still exist and can/will be resold at some time. Too much of today's music is fashionable crap dressed as artistry._{Adrian Belew}
Post #289,434 by bepatient 7/19/07 5:24:23 PM 7/19/07 5:24:43 PM Reply	dupe Too much of today's music is fashionable crap dressed as artistry._{Adrian Belew} Edited by bepatient July 19, 2007, 05:24:43 PM EDT Expand All History

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