Hedge Funds and Global Economic Meltdown

To understand the current economic situation a person would have to go back in time to March 11, 2008 and when Bear Stearns (a 158 year old company) shares were bought with some interesting effects.  It appears that somebody was betting that they would not be going to make their upcoming financial promise even though there was NO indication that the company (Bear Sterns) was in trouble as they still had several billion dollars on hand.

This risk taken by those buying would be comparable to someone buying something like $1.7 million dollars worth of lottery tickets.  When they bought these shares it gave them the right to sell $5.7 million worth in shares at a future date for $30 a piece.  Here is what is curious...at the time Bear was selling for about $65 a share and that future date was just 7 days away.  This was so irrational that people commented that someone must have known something inside to make this deal happen.

These videos are really informative and I encourage you to watch them.  Someone was involved and we may never know WHO caused this meltdown, but we do know someone gained and incredible profit from it.  The SEC needs to be re-vamped...seems like the fox is guarding the hen house to me.  Wonder what some of these regulator's bank accounts and investments look like?  They (the SEC) are NOT doing their jobs and ENFORCING the penalties that are necessary for people who break the laws.  The SEC has not done a THING about this issue to date!

Hedge Funds and the Global Economic Meltdown (Part 1).
Hedge Funds and the Global Economic Meltdown (Part 2).
Hedge Funds and the Global Economic Meltdown (Part 3).

Hedge Funds are who are responsible for this.  What are Hedge Funds?  Some of these people are the richest people in the nation.  Dan Loebo, Jim Chanos and Steven Cohen are just a few of the names of these ultra-rich who are just getting richer!  My mother used to call the group of people who are the puppeteers of the financial markets, "the money lords".  Seems we may have some names now.

What can we do about this?  Write your Representative! Send a note to your elected Representative and demand that the process of hedge funds must be dealt with.  They (hedge funds) must be put as an observer.

Hedge Funds - What are they?  Did you know that Hedge funds can make money when other funds (mutual) are lossing money?  Interesting...hmmm.