Bailing Hedge Funds Incognito?

[Issachar]

Goldman Sachs Hedge Fund Gets $3 Billion Bailout After Big Market Losses

NEW YORK (AP) -- Goldman Sachs Group said Monday it is leading a group of investors that includes Maurice "Hank" Greenberg and Eli Broad, sinking $3 billion into one of its biggest hedge funds which has seen its value plunge amid market volatility.

The investment bank said its Global Equity Opportunities fund "suffered significantly" as global markets sold off on worries about debt and credit. The fund lost about 28 percent in the past few weeks, dragging its value down to $3.6 billion, from about $5 billion last month.

Goldman Sachs will invest $2 billion. Other investors will contribute about $1 billion to the fund, whose computer-driven investment strategies were disrupted by triple-digit swings in the financial markets.

http://biz.yahoo.com/ap/070813/goldman_funds.html?.v=10

I've been looking for the source of a bad odour and I'm wondering if I found it? The FED was in the hot seat several years ago for directly bailing Capital Management .... are they continuing to bail the hedge funds through indirect means now? Bail the mortgage markets, which is what they've been doing last week and this week, only to free up other monies by these financial institutions to keep the hedges floating.

Just a thought as I read the above article ....

Issachar

[2nd Chance]

I heard somewhere that the Fed spent $138 billion in their recent bailout of banks and hedge funds. Absolutely atrocious! They are prolonging the inevitable. Unfortunately most people don't have a clue about the repercussions here. I think it is not fantasy to say that we could be looking at a collapse that will rival the great depression. Just utterly astounding to me what goes on behind closed doors. Sometimes i have to stop and ask myself if this stuff really happens outside of hollywood movies.:idunno

[Big Daddy]

Boy, I just finished this book "Creature from Jekyll Island" (http://www.realityzone.com/creature.html), and if history is any teacher, the US is in for a rude awakening.

The Fed's job, being the bank of last resort, IS to bail out their own. That is, the other banks and financial institutions. When they do this, it is paid for by the hidden tax - inflation.

I can't recommend this book enough for an understanding of where the US economy was, is now, and where we are headed.

Very enlightening.

[Issachar]

I just ordered that book! I should have it by Saturday or Monday. I am so looking forward to it.

Issachar

[2nd Chance]

There is a question here. Can the fed bail out the market this time?
They can't just print $500billion in cash and not expect the world economic system to take note. I really think this might be the beginning of the dollars collapse to its true value.

[4JesusLove]

What do you expect the true value is?

[Issachar]

The dollars true, intrinsic value is zero.

Issachar

[4JesusLove]

Thats encouraging. :(

[Issachar]

I guess I don't find it encouraging or discouraging. It just is how it is. If the printed, US dollar had intrinsic value, then someone could find one 400 years from now and still purchase something with it. If that should happen, they may be able to find a collector somewhere that might give them a couple $whatevers for it ... Gold or silver, for example, on the other hand, if found from 5,000 years ago, is still valuable today. Printed money has no intrinsic value. Do not use it near an open flame; i.e. a hot economy. Gold on the other hand, becomes more pure and hence, increases in value when subjected to "heat".

Issachar

[tk939]

Gold melts quite easily when exposed to heat, it will run through your fingers...
The inherent prolem, what people don´t want to see with fixing your currency against a commodity is quite dramatic. You can´t grow if the supply of the commodity doesn´t grow. With our current technology we are llimited to Earth. Any precious metal is quite limited in supply, used by industry. What if new industrsy advances need more precious metals than now? The same precious metals you ind the currency to are used up in nidustry, thus the money supply will be shrinking.
All companies, thate xport use options/futures to secure exchange values to calculate. This will no longer be possible. Expect a draqmatic increase in prices (Higher risk-higher expected return).