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New 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
New 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
New 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)
New 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
New dupe
Too much of today's music is fashionable crap dressed as artistry.Adrian Belew
Expand Edited by bepatient July 19, 2007, 05:24:43 PM EDT
     Bear Stearns says hedge funds worthless - (JayMehaffey) - (11)
         My heart doth bleed. -NT - (Andrew Grygus)
         And those investors - (bepatient) - (3)
             waiting for the indictments and taxpayer bailout -NT - (boxley) - (2)
                 Bear Stearns has been bulking up with lawyers. - (a6l6e6x) - (1)
                     All defended with the same tactic - (bepatient)
         Re: two funds - (a6l6e6x) - (5)
             I don't care much about the investors - (JayMehaffey) - (4)
                 Better to crash sooner than later - (tonytib)
                 Total sub-prime mortgage losses are in the $50-100 B range. -NT - (a6l6e6x) - (2)
                     Those are estimates - (bepatient)
                     dupe -NT - (bepatient)

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