Thursday, 18 September 2008

Gaming the banks

Greed is the incentive that drives hedge funds, those that don't make profits go bankrupt and die. Here is a nice article about how the Hedge funds are gaming current market conditions as controlled by US Treasury. The smartest people in the room have worked out that the US Government will pay the ransom of a Treasury bailout every time the viability the of a large corporation is threatened . We all understand that paying a ransom only helps in the short term, in the long term another hostage will be taken. Why don't the people in US treasury understand this?

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