Interesting commentary on hedge funds and their use of leverage, credit-default swaps and short selling:
Hedge funds, in my opinion, haven't received nearly as much blame as they deserve, both for helping to trigger the financial crisis and, subsequently, for making it much worse than it might otherwise have been.
Submitted: May 19, 2009
Views: 65
Comments: 1
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View Article: http://www.kiplinger.com/columns/value/archive/2009/va0519.htm
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Comments Received:
It's an interesting article but a bit extreme. One can blame hedge funds for the collapse of Lehman and the other financial problems out there, or give them credit for pricking the bubble. Hedge funds didn't create credit default swaps or subprime mortgages. They didn't loan to people who had no income and very little collateral.
In my opinion the tree was rotten to begin with and the hedge funds just were one of the tools used to bring it down.
Posted: May 19, 2009