Post by kaima on Sept 28, 2008 23:48:28 GMT -7
I have always had the misfortune to be thoroughly bored by finances, and when I get into personal finances my eyelids get very, very heavy. The concepts however are interesting, and I do follow those that are tossed out here and there about how things work. To me it is a bit like physics of flying an aircraft and the shape of a wing. You are taught the limits of how an airplane stays up in the air, and then when someone demonstrates a new method, a new shape or configuration that flies despite breaking current theories, the scientists come up with new theories to support the new reality.
So it is with economics.
In the German language press they have long criticized the American hedge fund creations as ‘totally unregulated’ and thus a hazard to the economy. It would seem that the last few weeks have lent some credence to this theory, of which I haven’t read the slightest hint in the English language press. If this belief were widely held in Germany, I would expect their banks and economy would be pretty well isolated from our economic troubles. It appears they are not as isolated as would currently be desirable; they are also having some troubles. Here is an interesting quotation I ran across:
<<<< www.nytimes.com/2008/09/28/opinion/28wolfe.html
Most hedge funds open up a crack on Sept. 30, Dec. 31, March 31 and June 30 to give investors the chance to “redeem” their investments, meaning take their money out. These moments are called gates, like a series of gates in a prison. The gate is the limit, the fixed percentage of your money, that the fund will allow you to take out at one time. Even with these strict caps on withdrawals, some funds may end up nothing but shells. >>>>
So let’s keep our eye open Tuesday, tomorrow, and see what happens in the financial world.
Kai
So it is with economics.
In the German language press they have long criticized the American hedge fund creations as ‘totally unregulated’ and thus a hazard to the economy. It would seem that the last few weeks have lent some credence to this theory, of which I haven’t read the slightest hint in the English language press. If this belief were widely held in Germany, I would expect their banks and economy would be pretty well isolated from our economic troubles. It appears they are not as isolated as would currently be desirable; they are also having some troubles. Here is an interesting quotation I ran across:
<<<< www.nytimes.com/2008/09/28/opinion/28wolfe.html
Most hedge funds open up a crack on Sept. 30, Dec. 31, March 31 and June 30 to give investors the chance to “redeem” their investments, meaning take their money out. These moments are called gates, like a series of gates in a prison. The gate is the limit, the fixed percentage of your money, that the fund will allow you to take out at one time. Even with these strict caps on withdrawals, some funds may end up nothing but shells. >>>>
So let’s keep our eye open Tuesday, tomorrow, and see what happens in the financial world.
Kai