Registered User Joined: 12/3/2004 Posts: 7
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I haven't been able to find the information I am looking for regarding Bear Stearns subprime market issues with two of their sponsored hedge funds. Why is it that Bear Stearns must pump money into the hedge fund to save the creditors? I thought if you invested in a hedge fund and lost money then that's your bad luck.? What is Bear Stearn's incentive to help out its hedge fund creditors? Are we looking at some type of domino effect here where some banks or mortgage companies could go under if the hedge fund collapses? Too bad they don't do that for the little guy.
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Registered User Joined: 10/7/2004 Posts: 2,126
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Wellcome to the Jungle rpowell. Sure enough the rules don't leverage in a fair way. Complains can be directed to the SEC. Not that it will help any... Just so you know, the markets, the media, and all the big players including your own goverment share a link. A link of their interest not yours.
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Registered User Joined: 4/25/2007 Posts: 91
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Interesting article in moneycentral.com on CDO's by Jubak may explain somewhat: http://articles.moneycentral.msn.com/Investing/JubaksJournal/CanBondMarketStandToBeExposed.aspx
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