HowardNasty Hedge Fund Has S&M Fit
Mirror at Rockefeller Center- NYC
Times Square, New York, near Lehman Bros.
The nasty Tracinda Corporation and associated Hedge Funds of Kirk Kekorian have decided to pull out of GM, in a nasty showing of “shareholder value” pique. That means they can be expected to “make war on” GM, and work to drive down their stock price in revenge. The GM board has refused the idea of a “strategic alliance” with Carlos Ghosn”s Renault and Nissan. In total rage, Kerkorian lackey Jerry York has resigned from the GM board of directors. I guess he got bored!!!! So white knight has a turn of the curl. When she was good, she was oh so good. But, when she was bad, she was horrid. The whips are out for some good old S & M. That’s why seasoned “observers” (or some say voyeurs) don’t take ups and downs on the stock market and in the Dow (as in Davey Jones’ locker) too seriously.
Even for the wild gamblers of hedge fund mania, we are in for a wild ride. With the “Foley Page Bender” scandal breaking, the hot blown air is coming out of the Republican, Christian-fundie machine. That means the financiers, who will then have to wait until at least February for their (as the British’s Lord Palmerston used to say) “splendid little war”. That means maximum volatility in raw materials market, with some things going down and some going up. Enough to drive a hedge fund maniac insane. Goodness, gracious, Great Balls of Fire!!! This is beginning to get exciting!!! With the Democrats coming in, in November, unless they immediately say “hail Bush” anyway, expect a sudden break in the financial system…and if the governments don’t want to get it together there may be no one left to “pick up the pieces”.
Meanwhile, checking the WSJournal and Bloomberg service, two of the large hedge funds are failing. Investors in Vega Select Opportunities hedge fund are demanding the return of $400 million. It fell almost 11-percent in September and has continued to post losses the first few days of October.
Vega Asset Management has collapsed 75-percent from its height a few years ago, with all six funds losing money. The founders come from Banco Santander (a partner of the Royal Bank of Scotland) so this could be a big hit.
Amaranth has gotten rid of 250 of its 420 hedgie workers, as it liquidates.
And on the real estate, real crash front, FDIC warns of risk to lenders from rising defaults on sub-prime adustable rate mortgages (ARMs). In California, default notices surged 67-percent in the second quarter, according to DataQuick. So are you about to lose the ARMs that hold you, dear mortgage broker???????
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