Re: Hedge Funds and Financial Market Failures

[<mosler@xxxxxxxx>]

The overall picture is that the wealthy made out like bandits when
regulated pension funds (where the savings of poor working souls are
trapped) lost money.


this is a continuous process.  even when
'making money' the retarded whales (pension funds, etc.) are
making less due to the sharks feeding on them
while being towed by the boat.

One doesn't have to look too deep to seriously
question the current process of resource/income
allocation.  I find it almost too painful to
look at, getting more extreme as productivity
increase faster than 'basic needs,' and watching those nearer to the 'bottom' supporting it unconditionally.

www.mosler.org

 There is evidence that what the WSJ celeibrates
as  "mass capitalism" is a balckhole of financial loss, and not all of
which is related to a slowing economy.  A good part is direct transfer
from the equity and commodities markets to the pockets of hedge fund
investors.  Structured finance, far from performing a risk management
function, is a legalized market failure that transfers wealth from the
passive investing public to the barracudas finance professionals.  The
giant sucking sound that Ross Perot fears did not come from Mexico, but
from the hired guns of "qualified" investors.

Henry C.K. Liu