Comments on: The Fed Should Not Be The Hedge Funds’ Insurance Agency http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/ Stocks, Options, Currencies and One Big Dummy Mon, 06 Oct 2008 13:41:33 +0000 http://wordpress.org/?v=2.2.1 By: Will http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3210 Will Wed, 08 Aug 2007 04:36:45 +0000 http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3210 I'm wondering at what point we stop expecting the next downturn in the economic cycle to be "just another recession" and begin to discuss the possibility of something worse... He Whose Name Shall Not Be Mentioned who last visited us in 1929. It would go down in history as being triggered by "the failures of highly-leveraged hedge funds" or "the Chinese crushing our treasury market" when in reality it would be what it is-- the upshot of our collective greed and lack of fiscal discipline for many decades now. I’m wondering at what point we stop expecting the next downturn in the economic cycle to be “just another recession” and begin to discuss the possibility of something worse… He Whose Name Shall Not Be Mentioned who last visited us in 1929. It would go down in history as being triggered by “the failures of highly-leveraged hedge funds” or “the Chinese crushing our treasury market” when in reality it would be what it is– the upshot of our collective greed and lack of fiscal discipline for many decades now.

]]> By: Alex http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3209 Alex Wed, 08 Aug 2007 00:46:48 +0000 http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3209 Very well said. What we are in now is worse than a bubble. We've floated to quite an altitude and when this one pops it'll be a LONG way down to firm ground. Very well said. What we are in now is worse than a bubble. We’ve floated to quite an altitude and when this one pops it’ll be a LONG way down to firm ground.

]]> By: Good to Go Pile . . .2nd Round Monday « Trading for the Masses http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3207 Good to Go Pile . . .2nd Round Monday « Trading for the Masses Tue, 07 Aug 2007 01:30:31 +0000 http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3207 [...] The Fed Should Not Be The Hedge Funds’ Insurance Agency [...] […] The Fed Should Not Be The Hedge Funds’ Insurance Agency […]

]]> By: LP http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3204 LP Mon, 06 Aug 2007 17:18:19 +0000 http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3204 Will: Hmmmm...by golly I think you are right...lets do it...the only problem is that by the time we make the money...we may not be manufacturing anything in America any more...matter of fact we may not be manufacturing anything at all currently...So we may have to come up with a more complex strategy...like buying a boat manufacturer after we make the yacht money... Will: Hmmmm…by golly I think you are right…lets do it…the only problem is that by the time we make the money…we may not be manufacturing anything in America any more…matter of fact we may not be manufacturing anything at all currently…So we may have to come up with a more complex strategy…like buying a boat manufacturer after we make the yacht money…

]]> By: Maybe Cramer DOES get it? http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3203 Maybe Cramer DOES get it? Mon, 06 Aug 2007 15:58:55 +0000 http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3203 [...] Re: Maybe Cramer DOES get it? I really think no one should take Cramer for anything more than entertainment value. Occasionally he does make insightful remarks, but I'd hate to see what the ROI would be basing your investment strategies on his show... yikes! For the most part he is shill for the listed corporations and hedgies first, and a honest adviser for the retail trader second. If the objective is supply a short term solution solution to stabalize market and bail out the financials with total disregard to the compounded future cost, then yes, he gets it. I have to disagree with that strategy though. There is a much larger implication though, and that is continued and even steepened unstable growth and over extension. Instead of some manageable downturns in the near future we could experience a economic nightmare. Nothing is with out cost and CPI effects all of us. I really agree with this linked post, though I have nothing against hedgies per se. The Fed Should Not Be The Hedge Funds’ Insurance Agency • dummyspots.com [...] […] Re: Maybe Cramer DOES get it? I really think no one should take Cramer for anything more than entertainment value. Occasionally he does make insightful remarks, but I’d hate to see what the ROI would be basing your investment strategies on his show… yikes! For the most part he is shill for the listed corporations and hedgies first, and a honest adviser for the retail trader second. If the objective is supply a short term solution solution to stabalize market and bail out the financials with total disregard to the compounded future cost, then yes, he gets it. I have to disagree with that strategy though. There is a much larger implication though, and that is continued and even steepened unstable growth and over extension. Instead of some manageable downturns in the near future we could experience a economic nightmare. Nothing is with out cost and CPI effects all of us. I really agree with this linked post, though I have nothing against hedgies per se. The Fed Should Not Be The Hedge Funds’ Insurance Agency • dummyspots.com […]

]]> By: Will http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3201 Will Sun, 05 Aug 2007 03:37:37 +0000 http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3201 I definitely think that any (falsely, through excessive intervention) skipped trough in the economic cycle will be added to the next one, increasing its depth and duration. Like one of those little control-line airplanes, which when you over-correct on the way down, it climbs too steeply, then dives even farther the next time. LP- regarding those yachts, how about we exchange a few million dollars for a basket of other currencies, then if the dollar ends up at $3/pound and $1.75/euro, we could trade 'em back and "Buy American" nice and cheap! I definitely think that any (falsely, through excessive intervention) skipped trough in the economic cycle will be added to the next one, increasing its depth and duration. Like one of those little control-line airplanes, which when you over-correct on the way down, it climbs too steeply, then dives even farther the next time.

LP- regarding those yachts, how about we exchange a few million dollars for a basket of other currencies, then if the dollar ends up at $3/pound and $1.75/euro, we could trade ‘em back and “Buy American” nice and cheap!

]]> By: LP http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3199 LP Sat, 04 Aug 2007 23:19:00 +0000 http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3199 Will: I think you are on point with this. It's time to accept the hangover is here and just deal with it. Let not try to pretend we can go forever with out a correction. This upcoming recession is just that, a correction on the yearly charts (do they even make those). While it maybe painful, it's also good in the long run. My wish is that the dollar increases in value as the price of Greek, turkish or Italian yachts may drop in price. Will: I think you are on point with this. It’s time to accept the hangover is here and just deal with it. Let not try to pretend we can go forever with out a correction. This upcoming recession is just that, a correction on the yearly charts (do they even make those). While it maybe painful, it’s also good in the long run. My wish is that the dollar increases in value as the price of Greek, turkish or Italian yachts may drop in price.

]]> By: del http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3197 del Sat, 04 Aug 2007 20:01:12 +0000 http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3197 Preach it, brother! It's too bad we didn't learn this simple concept two bubbles ago. Preach it, brother! It’s too bad we didn’t learn this simple concept two bubbles ago.

]]> By: ken http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3196 ken Sat, 04 Aug 2007 19:24:24 +0000 http://dummyspots.com/2007/08/the-fed-should-not-be-the-hedge-funds-insurance-agency/#comment-3196 I totally agree with you, and this blog's author here: http://alephblog.com/2007/08/04/the-fomc-as-a-social-institution/ So, it's natural that I totally disagree with this blog's author in my comments to his blog entry, and of course, Cramer: http://www.tradersnarrative.com/hell-freezes-over-pigs-fly-i-agree-with-cramer-1233.html You're absolutely right about the billionaire parasites. Sadly, the poor would suffer a lot more than these social insects if the situation would get much worse and affect the whole economy. The Fed has always come to the rescue of these bloodsuckers, thus they kept feeding the non-stop cycles of their irresponsible, excessive speculation (or rather, gambling and greed.) The "Greenspan put" must be left resting in its own grave. If revived, it would signal to these bastards, once again, that despite their irresponsibility towards society and economy, despite their selfish greed and financial recklessness, they'd always be bailed out by the Fed, at the great expenses of the under-privileged classes. I totally agree with you, and this blog’s author here: http://alephblog.com/2007/08/04/the-fomc-as-a-social-institution/

So, it’s natural that I totally disagree with this blog’s author in my comments to his blog entry, and of course, Cramer:
http://www.tradersnarrative.com/hell-freezes-over-pigs-fly-i-agree-with-cramer-1233.html

You’re absolutely right about the billionaire parasites. Sadly, the poor would suffer a lot more than these social insects if the situation would get much worse and affect the whole economy.

The Fed has always come to the rescue of these bloodsuckers, thus they kept feeding the non-stop cycles of their irresponsible, excessive speculation (or rather, gambling and greed.)

The “Greenspan put” must be left resting in its own grave. If revived, it would signal to these bastards, once again, that despite their irresponsibility towards society and economy, despite their selfish greed and financial recklessness, they’d always be bailed out by the Fed, at the great expenses of the under-privileged classes.

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