Hedge Funds: Victims of Their Own Success (and Leverage)

Simple solution to this problem, raise taxes on incomes above 400K to 78% In all of our history taxes on the wealthy were higher. In 1985 taxes were lowered on the wealthy, other cuts have occured in Capitol gains and other corpoprate rates to basiclly reduce federal income to the same levels they were leading up to the great depression.

hedge Hogs

Withdrew your Investment in Hedge Fund........That is the best.......What they are saying is the skin........Not the meat the to the bone..........

unbridled capitalism? it was more like crony capitalism with big broker/dealer trading desks offering sweetheart loans to hedge funds allowing them to flood market with capital & manage badly. while, at the same time, these broker banks charged very high interest rates to PUBLIC companies with REAL production potential who needed capital to develop their REAL assets. these usury type borrow rates eventually bankrpted many of these previously growing companies. and often the assets were taken over by - guess who - hedge funds & private equity who had cheap money bestowed upon them. that's the free market that big finance has wrought.

Sell all the hedge funds let them run dry...........

"... they were forced into strategies that were leveraged-based, not alpha-based." Right. They had guns pointed at their heads, and were threatened with bodily harm. Yup. Not their fault, either. Everybody's hands are tainted, and hedge funds are amongst the dirtiest. F*

think about this. pensions funds investing in high risk hedge funds. that's a risk for very high gains or loss thru leverage. if they gain, pensions get fat & so does fund managers' salary, now, if they lose, who pays to make up the shortfall in pension payouts... PBGC, the Pension Benefit Guaranty Corp. paid for by... you, the taxpayer. yes, that's you 401K holder who gets no such guaranty if your 401k funds takes a loss. in our cases, we just suffer this loss. too bad about us. we can't ever deduct these losses from our taxes. and government pensions will further get made whole by we, the taxpayer, we the chumps. that's what this latest brand of capitalism takes us for... chumps.

MOGLEYTHEMAN, WHY DO YOU ALWAYS WANT THE WEALTHY TO CARRY YOUR BURDEN. WHY NOT GO OUT AND BECOME WEALTHY YOURSELF AND FIND OUT WHAT IT IS ALL ABOUT? AMERICANS HAVE LEARNED TO TAKE FREE HANDOUTS INSTEAD OF BEING INNOVATIVE AND CREATIVE. AS MORE AND MORE PEOPLE LEARN TO LIVE ON ENTITLEMENTS, BLOATED SOCIAL SERVICES PROGRAMS AND OTHER WAYS NOT TO WORK, AMERICA FALLS FARTHER BEHIND. BE PART OF THE SOLUTION, NOT PART OF THE PROBLEM

"GLASS STIEGEL"REPEALLED IN 1999,, HEDGE FUNDS , WHAT TTHE HELL WERE THEY HEDGING CORN,TOILET PAPER.TURKEY TAILS, KLONDIKE TERRITORY YOUR"PENSIONS". "IRA, 401,HEDGING,SHORTING, LEVERAGING, NAKED SHORTING, I THOUGH THE STOCK MARJKET WAS TO INVEST IN AMERICA,,??,, WERES WAS THE OVERSIGHT,,,"SOMEBODIES"IN WASHINGTON DC, ARE RESPONSIBLE,,,,OVERSIGHT MY ASS

wall street blood suckers. betting on others suffering

mogleytheman comment to raise taxes on the rich is pathetic to say the least. Maybe he isn't old enough to remember the stagflation of the 70's when the top tax bracket was 78%. No capital investment took place, no jobs created and few businesses created. Why? Because no one wanted to bother risking any capital because if you were successful you would just have to give it all back to the government. So result was, high unemployment, recessions, a terrible stock market, little investment resulting in few technology changes all of which ended up hurting the middle and lower classes. That is until Reagan lowered the tax rate to 35%, then lo and behold investment capital poured in, technology boomed, business boomed and the world became a better place. Why do so many people have trouble gasping this concept? It it the talking heads on TV?...the liberal (and business ignorant) education system brainwashing our kids....or maybe the drinking water....who knows but thinking like that is dangerous.

mogleytheman comment to raise taxes on the rich is pathetic to say the least. Maybe he isn't old enough to remember the stagflation of the 70's when the top tax bracket was 78%. No capital investment took place, no jobs created and few businesses created. Why? Because no one wanted to bother risking any capital because if you were successful you would just have to give it all back to the government. So result was, high unemployment, recessions, a terrible stock market, little investment resulting in few technology changes all of which ended up hurting the middle and lower classes. That is until Reagan lowered the tax rate to 35%, then lo and behold investment capital poured in, technology boomed, business boomed and the world became a better place. Why do so many people have trouble gasping this concept? It it the talking heads on TV?...the liberal (and business ignorant) education system brainwashing our kids....or maybe the drinking water....who knows but thinking like that is dangerous.

There is a simple solution: don't invest with them. It's your money and you have the choice on what to do with it. I am not sure why some of you are so vindictive? Choice is everyone's option.

money talks men mumble

I have no sypathy to all them........They deserve to loss..They all suck your blood and meat to the bones.........get burn

The US in the 950-1960 period was lot better of as a country and as world power with 90% taxe on the wealthy. It is the greed of the new money crowd that is causig the problem now. There is a place for hedge funds but not for the jo six pac of the new money crowd.

It's true that when there is an excess of money for investments that means taxes are too low. We need to increase the tax rate on the wealthy between 5 and 10 percent in order to remove this excess money which is messing up the markets for the rest of us. Besides, there are very pressing infrastructure problems that need to be dealt with in our dying country. The wealthy here have had a free ride for too long, since Reagan, and they have grown accustmed to thinking they are not obligated to pay dues in order to live in a fine country club like our nation. They have been a very disloyal bunch.

(The industry's assets peaked at $1.9 trillion in June 2008, according to Bloomberg.) And oil went up to $147/barrel in July 2008. Coincidence, I think not. There hasn't been a severe supply disruption since Katrina in 2005, yet oil skyrocketed. Along with a lot of other commodities, like corn, steel, gold, etc. Sounds like speculators to me. I hope they lose their shirts, because most of us almost did.

They're telling everyone to not pull their money out, while their friends, you betcha bottom dollar, are cashing out. If you listen to these hedge hogs, guess who'll be left holding the bag when "there is no money left to cash out"? Hahaha, that's what you greedy suckers get for investing in these hedge hogs!

Hmmm... Hedge funds lost 20%+ and the Dow has lost around 45%.