AI
Friday, March 12, 2010 6:25:14 AM
Interesting article: http://www.benzinga.com/165966/and-the-world%E2%80%99s-largest-hedge-fund-is%E2%80%A6
Market Folly recently released this list of the world’s largest hedge funds and I just couldn’t help but laugh at the list. Unfortunately, it really shouldn’t be a laughing matter, but one of grave concern. Among the top hedge funds are several TARP recipients and bailout beneficiaries. Of course, the firms that received these generous donations are not actually hedge funds at all. No, they are “bank holding companies” that have been declared “too big to fail” (you know who you are). In other words, they have been declared vitally important components of the United States economy. So important that they cannot fail under any circumstance.
AND THE WORLDS LARGEST HEDGE FUND IS....
That is fine with me I guess. If we want to designate certain firms as “too big to fail” or in JP Morgan’s case, “too BIGGER to fail” following the Fed’s crafty merger with Washington Mutual and Bear Stearns, then maybe these important banks should not be allowed to fail. Perhaps they truly are too important in greasing the U.S. economic engine that they should not fail. But if this is the non-capitalist route we should so choose to take then let me pose a bigger and far more important question (excuse me while I bold this and capitalize it so you can pretend I am screaming this at Congress):
IF A COMPANY IS SO LARGE AND SO VITALLY IMPORTANT TO THE UNITED STATES ECONOMY THAT IT CANNOT BE ALLOWED TO FAIL THEN WHY DO WE ALLOW THESE COMPANIES TO EFFECTIVELY GAMBLE WITH THEIR CASH HOARDS?
Market Folly recently released this list of the world’s largest hedge funds and I just couldn’t help but laugh at the list. Unfortunately, it really shouldn’t be a laughing matter, but one of grave concern. Among the top hedge funds are several TARP recipients and bailout beneficiaries. Of course, the firms that received these generous donations are not actually hedge funds at all. No, they are “bank holding companies” that have been declared “too big to fail” (you know who you are). In other words, they have been declared vitally important components of the United States economy. So important that they cannot fail under any circumstance.
AND THE WORLDS LARGEST HEDGE FUND IS....
That is fine with me I guess. If we want to designate certain firms as “too big to fail” or in JP Morgan’s case, “too BIGGER to fail” following the Fed’s crafty merger with Washington Mutual and Bear Stearns, then maybe these important banks should not be allowed to fail. Perhaps they truly are too important in greasing the U.S. economic engine that they should not fail. But if this is the non-capitalist route we should so choose to take then let me pose a bigger and far more important question (excuse me while I bold this and capitalize it so you can pretend I am screaming this at Congress):
IF A COMPANY IS SO LARGE AND SO VITALLY IMPORTANT TO THE UNITED STATES ECONOMY THAT IT CANNOT BE ALLOWED TO FAIL THEN WHY DO WE ALLOW THESE COMPANIES TO EFFECTIVELY GAMBLE WITH THEIR CASH HOARDS?
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