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Why The Hedge Fund “All-Stars” Are Struggling

May 20, 2010 by  

Why The Hedge Fund “All-Stars” Are Struggling

Even as the S&P 500 rose a respectable 7.8 percent through the first four months of 2010, before giving it back in the first week of May amid concerns about Greece’s debt woes, the all-stars of the hedge fund world were having a rough start to 2010.

Moore Capital Management, whose founder, Louis Bacon, has his London digs (okay… more like a palace) right around the corner from me, had only posted gains of 1.58 percent this year—despite climbing to the top of the United Kingdom’s “hedge fund rich list” with a personal fortune of 1.1 billion British pounds.

Last year’s shooting star of the London hedge fund scene, emerging market manager Greg Coffey, who famously left a $250 million bonus on the table at European hedge fund group GLG Partners back in 2008, was down 5.88 percent into mid-March. And having recently sat next to the senior macro trader at Tudor Investments during a dinner at the swanky Carlton Club, I know that the mood at this iconic hedge fund is scarcely better than GLG. It turns out that the Tudor BVI Global fund was down 0.55 percent through mid-March.

No wonder this subpar performance has left investors scratching their heads. These hedge funds aren’t the industry’s one-hit wonders, either. They are, in fact, the “Babe Ruths” of the hedge fund world. After all, with the S&P 500 hitting 18-month highs in April 2010, you probably would think that a monkey throwing darts at a copy of The Wall Street Journal could be making money.

Hedge Fund All-Stars: The State Of Play In Global Markets
Well, if that monkey is an American one throwing darts at American stocks, the approach may succeed. But it’s been tougher for the monkey’s more cosmopolitan cousin.

The reality is that outside of the United States stock market, global stock markets haven’t done much in the last six months.

EAFE Versus S&P 500

Chart for iShares MSCI EAFE Index (EFA)

 

While the U.S. stock market rose a solid 15 percent during the last six months through April 2010, the MSCI EAFE Index—a stock market index that reflects market performance of developed markets in Europe, Australasia and the Far East—was clearly in the red for 2010. The formerly high-octane BRICs (Brazil, Russia, India and China) are struggling this year. And the weak performance of global markets masks a now seemingly distant but stomach-churning 15 percent sell-off in global stocks within the span of two weeks in January and February.

Hedge Funds Struggling: Here’s Why
Unlike U.S. retail investors, global macro hedge funds—or “multi-strategy funds”—aren’t necessarily focused solely on the U.S. stock market. And opportunities to make money outside of the U.S. stock market have been limited.

Yes, the dollar is up, and the euro and the British pound are down. Sugar soared for a while, but then collapsed. But gains on those trades have hardly made up for the cost of being whipsawed in and out of the market by sharp sell-offs in January and again in early May this year.

For retail investors, “buy and hold” remains the dominant investment mantra. And it’s also the strategy that has worked best over the past 14 months. But after a paradigm-shifting 2008, hedge funds are understandably skittish. They are (rightly) focused on the downside risks—whether financial contagion from Greece or another “Black Swan” event which they cannot predict.

Top hedge funds are also struggling because they look at risk in a fundamentally different way than investors schooled in the ways of "buy and hold." They are focused on the downside to a degree that is hard for most investors to imagine. At SAC Capital, if a portfolio manager is down 5 percent, he loses half of his money under management. If he loses 10 percent, he is shown the door. Apply that same standard to your favorite broker and see how long he’d last.

The experience of 2008 is also why many top hedge funds went on the defensive after the sharp sell-off in January. And they have been scrambling to recover ever since. Recent volatility in global financial markets notwithstanding, after an eight-week rally in the U.S. markets through the end of April, the sharpness and suddenness of the January sell-off seemed to fade into distant memory. As John Kenneth Galbraith observed, “the financial memory is very short.” For U.S. investors glued to the non-stop video game that is CNBC, “fear” rapidly transformed into “greed.” Of course, the big sell-off in the first week of May should serve as a reminder that risk management is as relevant to individual investors as it is to big institutions.

The bottom line? Yes, staying "dumb and long" in the U.S. stock market while ignoring the dips has been the single-best investment strategy over the past year. And any monkey, throwing darts at The Wall Street Journal would have outperformed the world’s top Market Wizards over the course of the last 14 months.

But as any old trader on Wall Street will tell you, “never confuse brains with a bull market.” And as any hedge fund manager will add: “If you pay peanuts, you get monkeys.”

Sincerely,
Nicholas A. Vardy signature
Nicholas A. Vardy
Editor, The Global Guru

P.S. If you want to keep up with my latest insights on developments in fast-paced global markets, you can now follow me on Twitter on @NickVardy or on my new blog, NickVardy.com.

Nicholas Vardy

is best known for his unique expertise in global investing. He is the editor of Global Bull Market Alert, Global Stock Investor, and The Global Guru, a free weekly e-letter with more than 165,000 subscribers, all published by Eagle Publishing. He is also CIO of Global Guru Capital (www.globalgurucap.com) and founder of the London Junto (www.londonjunto.com), a regular gathering where leading London hedge fund managers meet to debate the top investment issues of the day. Mr. Vardy has been quoted in the Wall Street Journal, Newsweek, Investors Business Daily, MSN Money Central, AOL, Yahoo Finance, and CBS MarketWatch. He has also been regular contributor to the Fox Business Network and CNN International. He is a Chartered Financial Analyst and a graduate of Stanford University and Harvard Law School as well as a former Fulbright scholar.

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  • silvereagle

    It’s all about GREED!The whole world and I mean the whole world is being run by SATAN!Have you ever in you life seen crap like this happening everywhere?I know I haven’t.It is only going to get much worse.Watch and see.

    • Al Sieber

      Just wait and see by the end of the year. watch the markets closely starting in July, it’ll start coming apart.

      • BigBadJohn

        Just curious why you think that? Generally election years are good for the market so incumbents can get reelected.

        • Al Sieber

          thats when a lot of the commerical real estate and residential real estate loans are due. June-July

        • Right Wing

          The first major housing crash involved sub-prime lending. Other, more risky lending (Alt A and Option Arm loans) were also made which offered ridiculous interest rate/repayment structures. These type of loans “reset” over periods of time…the first reset started early this year. Basically these are back-end-loaded loans. With high unemployment and a general lower ability to pay the high interest when the loans reset…people will default. The volume of this type of loan scenario is 30% greater than the sub-prime type and the foreclosures and loan defaults are expected to have a more devastating impact.

    • Mick for thought

      Yes absolutely I have seen it going on for years but the whitewash is washing off and the true nature of the money hungry psychotics is now showing through. It has always been thera. Our financial crises was brought to the front-line as the medial turned their focus upon it as the ratings building story that it is. The sadness is that the understaffed regulators were not able to see the big picture with their limited and perhaps corupt resources.

      • Vicki

        That and they were too busy watching Porn to actually work.

        • Mick for thought

          Now there is a constructive remark.

          • Claire

            Vicki is probably very accurate with her statement. Look at all the bums that have commited all kinds of risque acts and are still in office.

          • Mick for thought

            Claire,
            But based on what information. The people I see in office still are usually elected but the employees get dumped pretty fast when their caught surfing porn.

          • Claire

            I am referring to the politicians and their acts of infidelity and other debatable actions.

          • Mick for thought

            Claire,
            I knew that but regulators are goverment employees. The vast majority are busting there but to keep up with stuf on their plate for a year.

  • Al Sieber

    This just goes to show you crime pays.

    • Mick for thought

      Of course it pays. Unfortunately it is not paying with time in jail. I support additional regulation of these psychotics just as we would the on-the-street sex offenders, but also it is necessary to enforce the laws in place. An important problem is that those that are regulating are severely understaffed and underpaid for the job they are expected to do.

    • Vicki

      What, and be precise, crime was committed?

      • Al Sieber

        Wall street is a criminal enterprise.

        • Right Wing

          That is very general Al so not acceptable. If you believe that the central market of America, then you conclude that the actions of America are illegal? Since that makes no sense at all your conclusion makes…no sense. Greed does not equal evil (or satan). Greed is a character trait that drives certain people to make more than they need. There are also varying degrees of greed where some will feel charitable and others will hoard.

          Just out of curiosity, what do you think should be the proper motivation for people to make money? exclude those that are comfortable with a job to get by. Think about the person that wants to accept responsibility for employees, pay higher taxes, work longer hours, etc. all in an effort to make more money. What should motivate these types of people?

          • Al Sieber

            Right Wing, thats your opinion, I was just quoting part of a article by Bob Chapman of the International Forecaster who I’ve been following for years and has a high accuracy rate. so, you don’t think JP Morgan and Goldman Sachs are responsible for market manipulation and commodity manipulation? commex too? if it isn’t criminal, I don’t know what is.

          • Vicki

            Market manipulation is what markets do. Why are you upset with them. Cause they are better at it than you are?

          • Right Wing

            Oh I see, you based your opinion on one source and conclude that all greed is evil. That is syllogistic logic (ie. where there is smoke, there is fire). I believe that corporate greed has its excess and there are those that are over-the-top. I don’t support this extreme of greed but without some greed, you kill the motivation of people that want to make more. If your political ideology is to empower the government with the responsibility to collect from the rich and redistribute to the poor, then it should be clear that the motivated individuals will lose motivation and there will in effect be a lowering of standards across the board. Robin Hood only acted as he did because of a tyrannical character. The village again prospered when the true king returned. This supports my conclusion that greed is subjective. Sticking with this analogy, most reform minded people want real change to return. There is no allegiance to the types of leadership that has driven this country toward the edge of the cliff. The current administration is also agenda driven in trying to reshape America into something other than what the Constitution intended. What We the People want is a change in course toward the intended direction laid out for America at its inception. If that is just too hard to understand then we just return to sniping at each other instead of engaging in real discussion.

          • Sidewinder

            If You Read the Gospels, the Religious Right is Most Often Wrong

            I can’t see what all this sanctimonious values rhetoric has to do with Jesus. I’ve compared what I read in Gospels with what I’ve been hearing from the Religious Right, and I’ve concluded that the holier-than-thous must have traded in their red-letter editions of the Good Book for red-state versions that omit most of Jesus’ teachings.

            The truth is, if you depend on the Christian right for your theological sustenance, you probably won’t recognize the Jesus of the Gospels.

            Let’s recall what the Jesus of the Gospels espoused. “When you give a banquet, invite the poor, the crippled, the lame, and the blind. And you will be blessed, because they cannot repay you,” the sandal-wearing rabble-rouser was known to say.

            That sounds pretty good, but it makes you realize that JC would never have reached “Ranger” or “Pioneer” status in the Bush fund-raising machine.

            Then, of course, there’s Jesus’ encounter with the rich ruler who said he was a righteous man because he’d followed the Ten Commandments since his youth (though he gave no indication that he’d ever erected a monument dedicated to them in a public place).

            Jesus told the ruler: “There is still one thing lacking. Sell all that you own and distribute the money to the poor, and you will have treasure in heaven; then come, follow me.”

            Holy class warfare! No wonder Republicans have switched out the Jesus of the Gospels for a low-rent moralizer preoccupied with what other people are doing with their bodies.

            You may, for example, notice the absence of any critique of an economic system that turns Jesus’ birthday into an opportunity to jump-start consumer spending. Or any critique of corporate control of the public’s airwaves, which helps ensure the culture is saturated with sexuality and violence that appeal to the lowest common denominator but generate huge profits.

            Where is the righteous conservative Christian politician who makes these things campaign issues, who talks about them as moral issues?

            I have no doubt that the Christian right and their leader, George W. Bush, are sincere about their faith. But I also have no doubt–to paraphrase one of America’s pre-eminent theologians, Stanley Hauerwas–that sincerity has precious little to do with Christianity.

            This “moral values” talk doesn’t do much to sustain Christianity, either. The phrase is as banal as the hacks (of both the political and journalistic variety) who are busy fetishizing it.

            The truth is, if you depend on the Christian right for your theological sustenance, you probably won’t recognize the Jesus of the Gospels.

        • Vicki

          Proof by bald assertion is not very convincing. I also asked you to be precise which you totally failed to do.

          • Al Sieber

            Vicki, you mean to tell me you didn’t hear about Goldman Sachs getting caught 2or 3 weeks ago manipulating the gold and silver market? Bob hah a article about it on this site.

          • Vicki

            IF they were caught were is the DA? Why are they not in jail? Maybe cause buying and selling commodities is not (yet) a crime.

      • Mick for thought

        Fraud. Talikng up a product to sell it when you know it is trash. Check C-span tapes.

        • Mick for thought

          oops, talking not taliking

        • Vicki

          That is what snake oil sales men do. Come to think of it that is what salesmen do. Why are you upset with them? Know their nature and you won’t have a problem.

          Also free markets have a very effective method of dealing with snake oil salesmen. Trouble is the government ran in there (under Bush the first time in recent memory) and covered for them.

          Yes a free market would have marked them as snake oil salesmen and no one would buy from them again. They would have gone bankrupt.

          • Mick for thought

            So then you agree what they did was a crime and they should be treated as such. After all selling snake oil is fraud and punishable under the law as such. Correct?

  • eddie47d

    What a racket! Hedge fund managers make $84,200 an hour. Most folks don’t make that in 1-2 years.Too often they try to run the world and I don’t think they are doing a very good job of it.

    • Mick for thought

      The have no sence of right and wrong. Money is their God and they have no regard for the peons (US).

      • Mick for thought

        PS Thanks for covering my back when Barb was ranting about me.

  • s c

    For those who think robber barons like George Soros are “OK” because their politics are ‘right,’ ponder this. He’s been secretly BUYING gold lately. Do you thnk he intends to LOSE money by buying gold?
    In the near future, we’ll be looking down the barrel of another real estate disaster – thanks to Oloser and his pals. In just gets better and better when we have inexperienced, incompetent “EXPERTS” running the government.
    Criminals take care of themselves. They DO NOT take care of their VICTIMS.

    • Mick for thought

      All the rich guys have bought gold. Even Rush and Glenn have been doing it. Have you seen how much the price of gold has risen this year. Now would not be a good time to get into it because it is about to bump the ceiling and will drop as the rest of the economy recovers.

      • Vicki

        That would be all the smart guys bought gold (and or silver). Not all rich guys are smart and not all smart guys are rich.

        • Mick for thought

          How much has the price of gold risen and what makes anyone think it cannot have the same bubble pop effect as real estate.

          • Vicki

            The price of gold, like the price of anything else is based on supply/demand ratio with something else. Most commonly gold is traded for paper dollars. Since the supply of paper dollars has been increased by a LOT (see treasury printing info) there will be an increased supply of paper dollars. Thus those who have gold can ask for more dollars (increased supply of dollars)

            Those who have dollars and know the flood of new dollars will reduce the value of each dollar against anything else are wisely moving their wealth out of paper dollars and into gold, silver, whatever.
            Maybe even real estate

    • Chaos factor

      Sc… Yep, Bush and Cheney were real experts at running our government huh…..you’d have put John McCain and Sarah Palin in charge of our country….. And I don’t have a doubt in my mind that we’d be living in Caves had they been elected..

      • JeffH

        …and here is no doubt you just crawled out of your deep dark cavern…18 months behind schedule…a long hibernation no doubt!

      • Sidewinder

        Fundamentalists are nothing new however. They can be abrasive, angry, judgmental and downright mean, but they are not true representatives of any of the faiths for which they claim to speak. I say that because every major religion has had its share. Fundamentalist Muslims have made many non-Muslims fear that religion, and yet the Muslim faith, at its core, remains a peace-loving faith. Fundamentalist Jews have made many non-Jews fear that religion, and yet the Jewish faith, at its core, remains a peace-loving faith. And Fundamentalist Christians have made many non-Christians fear that religion, and yet the Christian faith, at its core, remains a peace-loving faith. It’s only when Fundamentalists are allowed to gain political power that their existence is a threat to mankind.

  • Joe

    Protect yourself! Buy Physical Gold, Silver, Swiss Francs, Canadian Dollar, Brazilian Real, Norwegian Krone, and Australian Dollar. Just in case also buy extra food & water.

    • Mick for thought

      See my comment above.

  • Joe

    Buy Precious Metals on dips only!

    • Mick for thought

      Exactly not at their peek.

      • Mick for thought

        Where are Right wing, JeffH, Kate8 and Barb. I miss their intelligent conversation. welll not Barb so much.

        • Right Wing

          Just bypassing your poor grammar and sentence structure Mick…and your blame thrower. Most conservatives have been watching this unfold for some time and probably don’t need/want to read more about it. I only stopped by to offer some help to those less informed and also to see what sort of blutterances you Neanderthals were posting.

          • Mick for thought

            Well I was missing your intelligent comments. Yep sometimes I get busy and do not proof my grammar but it does not make opinion of less value then yours doctor Einstein.

          • Right Wing

            Oh just having some fun Mick. I have a big sense of humor but a bigger sense of patriotism. Mostly because I work hard for a living and have five daughters to support. Incidentally…Einstein was a physicist.

          • Mick for thought

            Knew that RW and I have only 2 young daughters but a son in college to support.
            We might disagree on politics but I think most at this blog are patriots.

    • Al Sieber

      Yeah buy the dip, gold and silver took a big drop, nows the time to buy. silver is a good investment. it’s called the poor man’s metal.

  • Chaos factor

    It is greed… Rightwing greed….it’s no longer a free market…. It’s a very small number of people that have control of more than 95% of the planets wealth ….

    • Doug

      Hey —- Chaos you better see what the percentage of Liberal Dems are on wallstreet before you start running your mouth! There mostly Liberal Dems and gold is not a rock idiot its money! I think I just go to Chaos house and help myself to your fuel and food you know redistribution like you liberals like!

      • Chaos factor

        Dougie… I don’t give a flying crap wheather the criminals are democrats, republicans or rightwing midgets….a thief is a thief…. But I’d take a bet with you that the majority on wallstreet call themselves republican or conservatives….I’d rather have given them all handcuffs instead of bailouts and bonuses….in fact I didn’t post that the wallstreet frauds belonged to any party… So if our whole economy were to fail , gas stations , markets, banks.. Ect… Who would you trade your gold with?…you couldn’t even get gas in your car… So unless you lived next door to someone willing to take your gold it would be as useless as a rock… Like that lump on your shoulders…gold may be dollars… But dollars would be useless too… No wonder your a rightys…

        • Vicki

          Why do you attempt to equate people of wall street with thieves? Did one of them come to your door and steal your food?

          • Al Sieber

            The wall street “gang” fix the markets to their advantage, everything from stocks to precious metals and pocket the profit. the market is over bought. hedge funds are junk and its slowly catching up to them. reread the article.

          • Right Wing

            Hey Al…its a conspiracy…they are all out to get you!

          • Mick for thought

            Hm, wonder where Vicki works? No they do not stoop to petty crimes they are after millions and billions not nickles and dimes.

          • Vicki

            Al Sieber says:

            “The wall street “gang” fix the markets to their advantage, everything from stocks to precious metals and pocket the profit. the market is over bought. hedge funds are junk and its slowly catching up to them. reread the article.”

            I still do not see a valid crime. Did someone put a gun to your head and force you to buy some stocks? Or sell them?

            On the other hand the US government just placed a gun to my head and ordered me to buy health insurance. Now tell me again who is acting in a criminal manner.

        • Al Sieber

          Gold is the second reserve currency, the dollar(Fed.Note) is the first, for now.

          • Al Sieber

            Right Wing, they already got us. I don’t believe in conspiracys.

    • Mick for thought

      But when did “nolonger” begin. Think it persisted though many administrations and now as someone a lot people here donot like is trying to even things up a bit he gets attacked as socialist redistributionist rather than a correction that will restrengthen the middle class and open up chances for our young people to achieve the American dream.

  • Chaos factor

    Mick… Kates probley hiding under her bed…. I’ve never in my life seen such a paranoid person …

    • Mick for thought

      I think Kate8 and Barb are the same person. I needled Barb a bit and kate8 responded, hmmm?

  • Chaos factor

    Joe… Who would you trade with. If our money system failed?…I’d rather stockpile food, fuel and what goods I’d need to survive a meltdown….gold would be like owning rocks…. At the very least you’d have to be in the neighborhood of anyone who would trade goods for gold…because I doubt the gas stations would be in service….

    • Al Sieber

      You can’t eat gold but, you’ll need gold to eat.

  • Chaos factor

    I think our economy will be fine once those Reagan/ Bush tax cuts expire…. We did ok back in the 90′s…. We just need to make sure these ” ultra conservatives ” don’t get back in power… They’re very evil people…that’s why they like to cloak themselves in Christianity… Like wolves in sheeps clothing…never trust anyone that needs to keep telling you how moral they are

    • Vicki

      So since the 90′s was fueled by Reagan tax cuts why do you think that those cuts going away would bring back the 90′s? Perhaps you should study the roaring 20s a bit and the tax policies that followed to see what your future holds.

      • Mick for thought

        What years was Reagan president? Think most of the 90s were under slick Willy and before him George H. W. Bush who was a good president.

    • Al Sieber

      Our economy isn’t gonna get any better, it’s gonna get worse. we have no manufacturing left in this country, the government is putting out more money than it’s taking in, the reason for higher taxes. we owe China trillions of dollars, Greece is out of money, Spain is next, then all of Europe. the Euro is collapsing, all our credit is extended. need any more reason? unemployment insurance is ending for many the end of June. we have a war going on for over 8-years, and another on the way(Iran), we’re printing up money backed by nothing, created out of thin air, our country is being invaded by foreigners and Nero is playing the fiddle, no it isn’t gonna get any better for a long, long time. the U.S. will be the last to crash, “not with a bang, but a whimper….” we’re in trouble!!!!!

      • Right Wing

        Join the tea party Al. They understand the same thing and want to do something productive to turn the tide. Not the same party following but some real change.

        • Al Sieber

          You have a good idea there Right Wing, thanks for the advice.

          • Mick for thought

            Go for coffee it has more of a kick.

    • Al Sieber

      You’ll know when hyperinflation sets in. when a gallon of gas goes from $3.00 to $30.00 in 1-week, or a loaf of bread goes up to $50.00 you’ll know. it isn’t that things go up, the dollar loses it buying power. thats where gold and silver come in. silver is easier to barter with. gold and silver will always be worth something, paper won’t.

      • Mick for thought

        Like the late 70s and early 80s when gas rose from $0.15 per gallon to $1.50 and home prices jumped from $15000 to $50000 and morgage rates were around 15%

    • Al Sieber

      Go to mercola.com : U.S. creates 1.3 trillion out of thin air to cover banking scam. Bernanke should be imprisoned for life.

  • Robert Pgh Pa

    the constitution says coin money gold and silver and regulate the value . If we had obeyed the constitution we would never had a colapsing market or yo yo markets because you would have to put your money where your mouth is. trying to support the world with paper would not get anywhere. because people would not give products for paper. gold represents reality.

  • Chaos factor

    I doubt this country could survive another Neo Con administration..

    • JeffH

      ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ!

      • Sidewinder

        They are addicts. And like other addicts, they do not respond to logic or sound arguments. Like other addicts, in order to feel good, they must believe that their made-truth is the only reality, and they must, therefore, defend that truth against any outside influence.

  • Robert Pgh Pa

    by the way in the depression Pres Roosevelt stole all the gold from the people under the threat of imprisonment. he said after the emergency was over the would get their gold back. that never happened. we dealt with the rest of the world with the peoples gold. he triied to buy us out of a depression. it did not work. it took him egging the jappanese to attack us. and us entering ww2 to start to get out of the depression. but the people were robbed of their gold. when you violate the constitution you get bad results.

    • Al Sieber

      Franklin Roosevelt didn’t steal the gold, he made it illegal to own. he called in the gold and gave people $20.00 a oz. and 6-months or so later he raised the price of gold to $35.00 a oz. March, 1933, we were taking off the gold standard, and the U.S. became a corporation. we lost our unalienable rights for civil rights.

      • Vicki

        how is making something illegal to own not stealing? One of the big points of creating this country is that our founding fathers wanted to get away from the Kings edicts.

        For a truly free people there is no such thing as illegal possession.

        • Mick for thought

          Total freedom with rules is called anarchy.

          • Mick for thought

            Sorry, total freedom without rules is anarchy.

          • Vicki

            Anarchy is not necesarilly a bad thing. In fact it is one of the utopias that liberals have claimed to be wanting for many many years.

            c : a utopian society of individuals who enjoy complete freedom without government

            Notice however that our founding fathers knew that a little bit of government was necessary thus they chose to form our Constutionally Limited Republic. In it’s design they explicetly defined what GOVERNMENT was to be allowed to do. All rights and all other powers were to be in the hands of the people.

            Now I have looked over the Constitution many times and not found any place that authorized the government to tell me which herb I can eat nor which health insurance I have to buy.

            So Mick attempts to create distraction with anarchy when it is obvious to a truly free people that a LITTLE bit of government makes for a great society. Recent history of this planet shows that a lot of government does not.

  • Robert Pgh Pa

    al sieber I want you to know my father in law said that they gave him a note that when the emergency was over that they would give him his gold back. He is a legal mexican who came here in 1904. He never lied to me. I am of germanic decent and my grandfather never got his gold either. I was born in the usa.

  • TRUE PATRIOT

    Hedge funders and Short Sellers are the scum of the earth that cause most of troubles in the market! They win when everything fails and if your dumb enough to think that they don’t play both ends against the middle your only fooling youself! If everyone loses who cares they won! It takes a certain type of individual to do their job and they can also double as lobbyists, the other scum of the earth that gets paid when things go their way and oh who cares about what’s best for the country!

    • Mick for thought

      Patriot,
      Vicki thinks they need to put a gun to your head to be a criminal. I guess scam artist whether they are phishing on the internt or wearing Europen cut suits living in the hamptoms do not count.

      • Vicki

        Mick presumes too much. A burglar does not need a gun to steal. Stealing is stealing. Someone selling something they do not have is fraud (stealing). Mick has not demonstrated that Wall Street has stolen anything.

  • JeffH

    Now I’d bet heavily that the king of the hedge funders, old George Soros managed to manipulate through all of this with a tidy profit.
    Nothing like good inside information I always say! Or was it someone else that said that?

  • s c

    It was interesting trying to sort out pc scammers from those who were trying to inform and be honest about it. FYI – for the ultraliberal progressives who responded to this article, I’ll bet you invest the same way you propagandize (piss and moan, according to your programmer’s master plan).
    And for those who dare to claim that a ‘rightwing Christian’ is part of the establishment, you’re making the same mistake hippies made in the ’60s. The government is Caesar. Some rightwingers may be wannabe caesars, but it’s those who want BIGGER government who hate the people and want to enslave them. These days, we politely call them progressives. Anal retentive is more accurate, but most people like to define terms quickly, and it takes time to sort out those with honest opinions from those who worship lies and pc.

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