Comments on: Closing Wall Street’s casino http://www.hedgeworld.com/blog/?p=3759 A look behind the hedge fund curtain Sat, 25 May 2013 12:34:49 +0000 http://wordpress.org/?v=2.6 By: Tom http://www.hedgeworld.com/blog/?p=3759#comment-34477 Tom Mon, 21 Nov 2011 15:52:56 +0000 http://www.hedgeworld.com/blog/?p=3759#comment-34477 Goldman should have been forced to take their lumps, along with everyone else. They should know the parties they are dealing with, and their ability to pay up on bets they have made. Banks do this all the time with loans. As far as the survival of the fittest, sure, go ahead and flush GM down the toilet. And see thousands upon thousands of workers go on the dole, while the only people making money are the bankers selling off the assets. Then, companies with no legacies or responsibilities can step into the breach with their foreign government subsidized manufacturing plants, and keep the jobs out of the states. Don't confuse pure gambling with investment in a productive enterprise. You can buy stock in a company, making a bet that it will continue to productive, and therefore will always have some value. betting someone else's house will burn down is something entirely different. Goldman should have been forced to take their lumps, along with everyone else. They should know the parties they are dealing with, and their ability to pay up on bets they have made. Banks do this all the time with loans.

As far as the survival of the fittest, sure, go ahead and flush GM down the toilet. And see thousands upon thousands of workers go on the dole, while the only people making money are the bankers selling off the assets. Then, companies with no legacies or responsibilities can step into the breach with their foreign government subsidized manufacturing plants, and keep the jobs out of the states.

Don’t confuse pure gambling with investment in a productive enterprise. You can buy stock in a company, making a bet that it will continue to productive, and therefore will always have some value. betting someone else’s house will burn down is something entirely different.

]]> By: Dino http://www.hedgeworld.com/blog/?p=3759#comment-34467 Dino Mon, 21 Nov 2011 12:34:00 +0000 http://www.hedgeworld.com/blog/?p=3759#comment-34467 I'm tired of all this pompous ignorance. The problem is not Wall Street, bankers and their bonuses, or hedge funds. The problem is our politicians who are beholden to big money. Geithner and Paulson gave taxpayer billions to AIG, not Goldman Sachs. Second, there is no sense in trying to legislate bonuses, taxes, high frequency trading etc etc. None of those is a problem. These are all symptoms of the real disease - which is the fact that our corrupt politicians have served the banks a free 'taxpayer put'. Enact a law that says public funds can never be used to bail out a profit making entity. End of story. If it's systemically important, then the state owns it and runs it - not for profit. If you make a profit, then you take your lumps in the free market. You screw up, you die.... It really is that simple. I’m tired of all this pompous ignorance. The problem is not Wall Street, bankers and their bonuses, or hedge funds. The problem is our politicians who are beholden to big money. Geithner and Paulson gave taxpayer billions to AIG, not Goldman Sachs.

Second, there is no sense in trying to legislate bonuses, taxes, high frequency trading etc etc. None of those is a problem. These are all symptoms of the real disease - which is the fact that our corrupt politicians have served the banks a free ‘taxpayer put’. Enact a law that says public funds can never be used to bail out a profit making entity. End of story. If it’s systemically important, then the state owns it and runs it - not for profit. If you make a profit, then you take your lumps in the free market. You screw up, you die…. It really is that simple.

]]> By: jnahas http://www.hedgeworld.com/blog/?p=3759#comment-34033 jnahas Fri, 18 Nov 2011 19:24:08 +0000 http://www.hedgeworld.com/blog/?p=3759#comment-34033 All investing involves speculation. I think IBM is going higher, it goes lower I decide not to pay my brokerage firm for the trade. It is the same principal. So now some investments are more speculative than others, but who decides? Before Google was Google it was a bet. Giving Steve Jobs money is a bet. Moreover, most derivatives are used for hedging, not speculation. However, without speculators there would be NO LIQUIDITY FOR those who have a business need. Including farmers that hedge their crops, airlines who hedge jet fuel or, steel companies or companies that use a lot of metal to hedge metal prices. The list goes on. What seems witty and clever at first blush is really just ignorance and covetousness disguised as self-righteousness All investing involves speculation. I think IBM is going higher, it goes lower I decide not to pay my brokerage firm for the trade. It is the same principal. So now some investments are more speculative than others, but who decides? Before Google was Google it was a bet. Giving Steve Jobs money is a bet.

Moreover, most derivatives are used for hedging, not speculation. However, without speculators there would be NO LIQUIDITY FOR those who have a business need. Including farmers that hedge their crops, airlines who hedge jet fuel or, steel companies or companies that use a lot of metal to hedge metal prices. The list goes on.

What seems witty and clever at first blush is really just ignorance and covetousness disguised as self-righteousness

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