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8/10/2007

How good are fund managers?

Dow hit by 380 pts fall The SubPrime Loan crisis is not going to go away. American and European Banks are pumping in a few hundred billion US$ to try to stave off the problem. Some American and probably European funds are hit bad. Investors who have put faith in the professional expertise of these fund managers are heading for a rude shock. Could this be the American equivalent of the Asian financial crisis? Let's hope that these great talents and fund managers are able to clean up the mess they have created. It is unbelieveable that they could create such a big bubble for themselves and they are teaching the world how to manage their economies.

8 comments:

redbean said...

Asean should set up an Asean Monetary Fund and offer to help the Americans in their financial crisis. And I will nominate Mahathir to head this AMF and let him visit Washington to tell the Americans what to do, with his list of conditions of course.

That will be fun.

Anonymous said...

The Plunge Protection Team in the US have probably been intervening in the market over the last couple of weeks. You can see that at various times the rebound was immediate after a sharp fall on the Dow. How much money can they pump in to prop up the stock market I wonder?

Matilah_Singapura said...

Can't keep printing more and more paper money, then pyramiding credit on top of that... and not expect anything nasty to happen.

C'mon, its just natural law at work. If it didn't come from the sub prime sector, it would have come from somewhere else in the highly active home loans market. Housing (with white picket fench, backyard and pool) is part of the "Great American Dream".

You have America already as the world's largest debtor nation, technically insolvent, bankrupt and in reality worse off than any 3rd world country in terms of debt to the rest of the world.

HOW IS MONEY (specifically US Dollars) CREATED?

Answer: By Banks making LOANS. Housing and consumer credit make up huge LOANS business for commercial banks.

So when people can't re-pay what they owe, or the values of their houses fall- or both, then things are going to happen, and happen quickly.

Matilah_Singapura said...

...back to the question: How good are fund managers?

Answer: Very good at taking your dough, and taking their "cut" (management fees) out of your dough.

Fact of life: Most funds don't perform. Period.

Anonymous said...

It is unbelieveable that they could create such a big bubble for themselves and they are teaching the world how to manage their economies.


you may also find it unbelievable that they sell arms to warring factions while advocating peace.
blame it on creative minds.

Anonymous said...

People don't call them double-headed snakes for nothing.

redbean said...

the worst thing they are doing is that whenever they go around starting fires or killing people, they made it a point to 'invite' all their friends to the party so that the hands of their friends are also dripping with blood.

then their friends cannot criticise them and they can tell the world that their friends also support them in their killings and destruction.

Anonymous said...

Exactly. And if you fall out with them they know how to unstablise your regime.