I love reading educated, useful and to the point articles and that’s why this Bloomberg article with $24 billion GLG Partners co-chief executive Emmanuel Roman is something to which all financial articles should aspire.
Here are ER’s main points:
-as many as 30 percent of hedge funds will close and the U.S. will regulate the $1.7 trillion industry.
-U.S. regulators will “find a way to force regulation…There needs to be some scapegoats, and they are going to go hunt people…Regulation is “long overdue,” he said. In the U.S., “someone can graduate from college on a Friday and start a hedge fund on a Monday.”
-financial markets have “overshot,” he said…In some areas of financial markets, including loans, there are “once-in-a-lifetime opportunities,” he said. “At some point, people will say this isn’t 1929 to the power of 10.”
I agree 100%, most people running funds, including me when I was a wannabe fund manager, don’t deserve to be.
And even though it’s not my area of expertise, I don’t think this is 1929 all over again…my guess is we’re just de-leveraging and once the forced selling is over and done with, we might be surprised at why we thought the market was tanking…kinda like our now seemingly faulty thinking that oil was going up due to demand/growth when in fact it was probly just speculators.
And the fact that speculators can have so much influence on pushing prices up and down means more regulation cuz $1.7 trillion in hedge fund assets really means something like $50 trillion of $ being played with every which way and in order to get a grip on the markets, people gotta know what that $’s doing!
Posted in Adapting, Manipulation