a thoughtful web.
Good ideas and conversation. No ads, no tracking.   Login or Take a Tour!
comment
b_b  ·  2891 days ago  ·  link  ·    ·  parent  ·  post: The Hedge Fund Killing Field

I want the hedge fund model to fade into the dust as much as the next guy, but the downside is that while the hedge fund guys lose their 2/20, the investors get buttfucked. We're in for some short term pain. But hopefully (and I mean I'm hoping against all reason) this is the leading edge of a general paring down of the finance sector, which is so hypertrophied that none of us can wrap our heads around it. This line of thinking has infected the minds of every CFO in America, while we forget that America didn't get rich by managing equities.

Unfortunately, we probably need another melt down for these reasons. Crisis 1 apparently wasn't painful enough to overcome the finance inertia. Crisis 2 might be, although I fear now that the Tea Baggers are the de facto power in DC that the cure will almost assuredly be worse than the disease. President Cruz and his Goldman exec wife I'm sure could come up with some really creative "solutions" to what ails us. My fear is that we have a nuclear bomb dropped on the banks right around mid-August, which gives Trump's it's-all-the-Mexicans'-fault message just enough of a bump to propel him into office.

I'm probably reading too much into it. Probably.