Zeev's Turnips Patch-No Politics (ZEEV)

[marginnayan]

So, the fear is that hedge fund problems could lead to some major financial collapse a la Long Term Capital…much overdone. First of all, there’s 7,000 of them now and to an extent now they cancel each other out. Mr. Greenspan has been arguing that they supply liquidity to the market and now because of their numbers, the failure of a few of them is not a threat to the system. And he could well be right, because particularly those who do spread trades as opposed to the macro funds who take specific bets, then as they’re unwinding these positions, there’s always hedge funds on the other side of these.

Good. Rich getting richer from rich.