Who buys this stuff?
June 21st, 2007
A few days ago, two very large, highly-leveraged Bear Stearns hedge funds faced margin calls after sustaining enormous losses from the subprime mortgage collapse. One of the creditors, Merrill Lynch, seized over $800 million in collateral and began to auction it off. As a result, the fund is near failure.
I hope this doesn’t mark the beginning of a hedge fund meltdown. The private equity sector is looking a bit scary too, if only because of the unchecked hubris.
(This post is part of the 100/100/100 challenge)
personally, i would like to see more hedge funds take a crap – mostly because they are exclusive to the rich and primarily focus on evading taxes. sure – taxes may be annoying. but when you have and invest millions of dollars, you should pay taxes on it – as you’re a lot better off than the standard $32k family who doesn’t even invest because they can’t. well, that – or our government needs to close the loopholes in our tax structure just a bit more…and update a lot of the codes from their 1980 status…
Word! Down with the hedgefunds!