swaps

When a Publicly Traded Hedge Fund Blows Up

Right.
After stealing so much wealth through bonuses and stock options - distributing excessive wealth to themselves - they then turned it over to hedge funds to make them richer. The hedge funds then borrowed out of thin air fiat money from the banks and proceeded to bid up the prices of everything from houses to oil to public stocks.

They pushed prices to high the sheeple upon whom this whole charade rests was unable to keep up because the banks would not leverage their own modest bank resserves by 10 or 20 to one.

Collapse.

The destruction is being felt by all but the greedy graspers at the top of the pyramid have no tolerance for economic pain - and screamed for the bailouts to restore their illbegotten fiat money.

Conde Nast Portfolio predicts thousands of hedge funds will go out of business. Good riddance. But that likely means the wreckage they have left in their wake - still held by us unleveraged sheeple - will grow back to the sky much more slowly.

It will be sustainable, hopefully.

As for the hedge fund managers - why shouldn't they be out of a job? They were too stupid to actually hedge.

And when they reincarnate into their new lives on Wall Street, they will still be stupid - but less stupid than the next wave of people who throw their left over money at them.