Re:Washington Versus Silicon Valley
by hristov on Friday August 07, 2009 @04:26PM
(#748479)
Where did you get that? Multiple hedge funds collapsed. Their collapses weren't as public because hedgefunds tend to be very secretive but many, actually most of them closed their doors.
Also, hedgefunds like banks were the main cause of the meltdown because they were so leveraged when the market prices of their assets decreased even slightly they had to sell large chunks of their assets to cover their losses, which caused further decrease in prices, which caused further sales, which caused the death spiral of the entire economy.
Again the banks were more vocally criticized for this than the hedgefunds because the banks are insured by the federal government, but the hedgefunds were doing it just the same, and they are just as much to blame.
The only thing that you said that is true is that the hedge funds did not really take tax payer money. That is true because they had absolutely no possible argument to ask for taxpayer money. The federal government was already on the hook for the banks because it ensured them.
Also, hedgefunds like banks were the main cause of the meltdown because they were so leveraged when the market prices of their assets decreased even slightly they had to sell large chunks of their assets to cover their losses, which caused further decrease in prices, which caused further sales, which caused the death spiral of the entire economy.
Again the banks were more vocally criticized for this than the hedgefunds because the banks are insured by the federal government, but the hedgefunds were doing it just the same, and they are just as much to blame.
The only thing that you said that is true is that the hedge funds did not really take tax payer money. That is true because they had absolutely no possible argument to ask for taxpayer money. The federal government was already on the hook for the banks because it ensured them.