Are hedge funds the reason to the bad economy in USA?

[italkcash]

I am just wondering, as these mayor players seem to have a big saying in the markets today. Hedge Funds are definitely causing troubles for the US market as they constantly hedge the weak forces. For example oil and food, skyrocketing right now, and seems like a good bet for hedge funds to keep in inflating, especially with the low regulative on the mercantile markets.

Or to put it differently, if I ran a Hedge Fund, I would not sit back and do anything but playing the oil, as I could see it would give me astronomical returns in the portfolio.

[elvenrunelord]

Yea and your going to get screwed probably soon. America i think will be nationalizing the oil industry in the next couple of years to prevent it from being used to finance terrorists.

[BrendaMarie]

Can someone please explain to me what a hedge fund is? I've heard the term and tried to read up on it but still don't understand it.

[Ms_Margaret]

Originally Posted by italkcash

I am just wondering, as these mayor players seem to have a big saying in the markets today. Hedge Funds are definitely causing troubles for the US market as they constantly hedge the weak forces. For example oil and food, skyrocketing right now, and seems like a good bet for hedge funds to keep in inflating, especially with the low regulative on the mercantile markets.

Or to put it differently, if I ran a Hedge Fund, I would not sit back and do anything but playing the oil, as I could see it would give me astronomical returns in the portfolio.

The most successful market of the last ten years, hedge funds, funds of funds and private equity, may finally be coming to an end under pressure from all sides – falling markets, falling commissions, operational issues as well as the continued regulatory attacks. They are circling their wagons to defend themselves but is it too late for them.

Regards

[Ms_Margaret]

Originally Posted by BrendaMarie

Can someone please explain to me what a hedge fund is? I've heard the term and tried to read up on it but still don't understand it.

Hedge Fund: A hedge fund is a fund that can take both long and short positions, use arbitrage, buy and sell undervalued securities, trade options or bonds, and invest in almost any opportunity in any market where it foresees impressive gains at reduced risk. Hedge fund strategies vary enormously -- many hedge against downturns in the markets -- especially important today with volatility and anticipation of corrections in overheated stock markets. The primary aim of most hedge funds is to reduce volatility and risk while attempting to preserve capital and deliver positive returns under all market conditions.

I hope that you understood it now.

Regards

[staffjam]

You can't blame the hedge funds. They just took advantage of the conditions that were presented to them - if you're looking to point the finger i'd look at the central banks and governments for their loose money policies

[david1987]

Hedge funds is not responsible for all these activities. it just depends on user who wants to use.

[hyipfactory]

Anyway, all invest tool will have risk. When too much people play in the same way with the same tool. It will become dangerous .

[nodes]

Hedge funds may have participated in the current crisis. Historically only the central bank where able to control money (thought interest rates and printing money). Hedge funds using more leverage (1:30) for example thanks to derivatives, have created artificially liquidity beyond the control of a nation

[ghuxe495crh]

you made some good points there. i did a search on the topic and found most people will agree with your idea.