Economic Terrorists & Hedge Funds & US (United States)

Discussion in 'Economics' started by limitdown, Jan 3, 2009.

  1. Economic terrorists use sophisticated methods to cause economic disruptions, and profit at the behest of their masters while presummably taking advantages of mispriced assets and trading annomolies that occur, as well as on the other extreme of the spectrum conduct themselves in as malicious a manner as possible in the marketplace, hence the title and name of economic terrorists.

    Hedge funds use sophisticated methods to cause profits to flood into their accounts at the behest of their masters (owners, shareholders, investor pools, etc.) while presummably taking advantage of mispriced annomolies that occur in the marketplace, as well as on the other extreme of the spectrum conduct themselves in as choose any phrase:
    • have small groups of secret traders began the momentum swing, while having the rest of the firm trade against that false misdirected momentum
    • conduct themselves in as inconspicuous a manner as to manipulate, corner, strangle, hold hostage or otherwise corners or segments of the marketplace solely for profit with no positive economic real advantage to their actions
    • use advanced trading, automated trades entry methods (black boxes, ecn's, electronic order routing methods, etc.) and other complex multiple step hedged or portfolio balancing methods, not for investment but for creating artificial trading patterns for which others respond to thinking these are live or normal patterns occurring natrually, solely for the sake of reversing those positions to their benefit and the deliterious affect upon the marketplace
    • otherwise engage in other sophisticated false trading methods and trickery.

    Yeah, so what? (spoken with a Brooklyn, New York accent, with all the gestures and verbal emphasis too)

    well, let's see:
    • we have the failure of the GSE's (government sponsored entities) FNM & FRE. GinnieMae & SallieMae seem to have escaped for the time being
    • we coined a new economic term: toxic assets, which are really worthless, and would normally be called liabilities or uncollectable debts, but since they are still on the account sheets of these originating or holding firms, they are negative assets
    • we have always had syndicate trading firms, now called hedge funds, and fund of funds and other outside the mainstream market participants
    • we have news events with real, substantive public deliterious affects upon society, both institutional, charitable and personal wealth, such as what happend (just with) the Maddoff scenario, as well as others
    • Wall Street no longer exists accept in the history books, and most ran tail towards becoming Commercial Banking firms
    • B School (graduate business school) programs will radically change over night away from producing students for wall street grinding mills and towards other skills
    • we have a new term: credit market squeeze, uh, freeze up, which in itself is not new, but the magnitude and global affect and effects are enormous, irrespective of whichever country is the subject or whichever industry or industry is the subject, such as:
      1. commercial construction loans,
      2. residential US home loans,
      3. auto company financing and other examples too[/list=1]

      Either these are musings of a trader, or
      events that we are all facing daily in the business news, or
      events that will shape our careers, or
      events that we will work through....

      what a challenge
  2. talknet


    75% of Hedge funds & Mutual funds are honest but they DO NOT have "business brains".

    "Honest Hedge funds & Mutual funds" are worst than "fraud companies" because "Honest Hedge funds & Mutual funds" will invest people's money in "Loss-making business" & in the end Hedge funds & Mutual funds will shut down and people/investors will lose all their money.

    In other words, there is no difference between honest & fraud hedge & mutual funds.

    When people deposit money with Hedge funds and Mutual funds, they do not know where their money is being invested. For example-: People deposited Multi-billions with Madoff's investment Co. and they never knew their Multi-billion was invested in a "Ponzi scheme". People received their "profit statements" every year and they were very happy.

    Honest Hedge funds and Mutual funds invest people's money in "Loss-making business" such as Stocks, Real estates, worthless giant companies and banks. People/Investors do not question the "source of investments". Only "final results" are sent to investors.

    My sincere opinion is that, worldwide Hedge funds and Mutual funds should be shut down. If not, there will be many more Multi-billion dollars frauds and business losses in future because of these "worthless Hedge and Mutual funds"
  3. the hidden world of the over the counter or under the desk investment club, group, hedge fund world is being put on stage now.

    the scene of this group is changing and new actors are lining up to fill the stage,,

    the fat ladies are singing in chorus after chorus line now....

    gooses are being, cooked, and burnt!

    where's the moral outrage, or is it all polite showmanship, and carefully managed rage?

    will we get to see the perp walk?
  4. I have to agree with Limitdown. The "Hedgefund" honeymoon is over. Madoff, is the poster child. Overall Hedgefund returns are piss poor.

    I deal with Accredited Investors and "All", I mean all of my clients who had money in Hedgefunds pulled out last year. Upon casual conversation with clients, they speak very poorly of 'money managers' and "hedgefunds". They say that Risk is not truly discussed, that they promises to make them money, that WallStreet Warriors are full of shit and only highlight the upside, never the downside (Money that could be lost).

    I stress RISK and the good chance that my clients will loose money with me in the start of doing business. However, their odds become better when they spread risk across a few projects and to play the Game that I offer, the only way to play is buying multiple deals. You would be surprised how Honesty and straight forwardness works. Tax writeoffs help but its "Selling the Risk" that brings me money.

    Even though most of my client had only had 3% of more of their networth in the "markets", they still refuse to re-enter the Stock Markets in any manner. Due to my back ground as a Trader, we often discuss options that present a possible play in the Markets and most shun the idea at the end of the day.

    All I can say is, Stock Brokers, Hedgefund Managers are gona have a hellofa time bringing in new money this decaded if they deal only in US Equites.
  5. Once fed flood the market with liquidity; see how fast they change theirs into equities. :D

    It is all a big game, every game has a set of rules, rule-breakers need fall-guys, no exception. Music and singing will continue.

  6. just a suggestion,

    slow down, take the time to form complete sentences and make sense,

    I can't understand, what seems to be a very intelligent comment, but it needs to speak for itself,

    try it again
  7. talknet


    The problem is that Hedge funds and Mutual funds are luring investors by saying Stocks and Real estates have bottom out (lowest price available) and this is the best time to buy and the Stocks & Real estates will again reach "2008 peak-prices". Surprising investors are believing these stories. There is no "guaranteed sales future" for worldwide giant companies.

    Investors are told the growth story of China & India having 2.5 billion people. But the fact is China & India will crash to rock bottom now.

    The most vulnernable are young investors because they have high-profile dreams (which will never become true)
  8. getting back on point,

    hedge funds take advantage of their outside the normal regulatory atmosphere and are allowed to operate targeting wealthy or so called sophisticated investors, thus, targeting those with larger than average person wealth, and larger egos than average person wealth, and thus larger loss capability than average person wealth, and thus not needing the average person's SIPC protections.

    hedge funds take advantage of their ability to game the system, in the truest sense. search on any web-based search engine for articles on the largest hedge funds, during their prime and the glowing articles written about this secretive world and how they do what they claim they do, or what they let their marketing machines let slip about how they do what they claim they do.

    hedge funds have been able to set up, say 8 out of 100 traders in a special task group, with the specific objective of a technique called: shaking the money tree, whereby they are able to start or cause a ripple in the underlying (security, future, option, bond, OTC derivative (credit swap, etc.) or otherwise) and then have the other 92 traders (not necessarily knowing this started from within their own walls) see recognizable trading patterns that they normally react to.

    • that method of gaming the system takes huge sums and is surprisingly easier than one would normally think, given all the automated trades entry systems as well as all the other globex automated trades interfaces.

    • that method of gaming the system causes waves to either counter trend, magnify existing trends or start new trends where directionless markets existed just moments before

    • that method of gaming the system was thought to be impractible and wothless, but with the excessive concentration in sheer dollars awaiting some investment vechicle from which to earn a stellar R.O.I., these tactics of wasteful or throw away front running are envogue.

    • that method of gaming the system was thought to be almost impossible until just a few short years ago. Forbes magazine wrote articles on this method used by one secretative fund of fund manager / management firm.

    • that method of gaming the system isn't quite illegal and if it were, would be one of the most improbable to detect, but allows for doing the more commonly known strategy called: strangle and other similar methods used in commoditiy and advanced equity trading shops.

    again, so, what?

    well, either moral or social outrage will take its revenge on the damage done to the financial society (as a whole) thorugh these mthods or similar, as well as watch while other Madoff's are uncovered....