Are Hedge funds destroying the economy?

[FinanceDude]

Again, there is a whole different story between shorting a stock vs. naked shorting a stock. The whole naked short issue was allowed by brokerages in order to make a more liquid and efficient market. Hedge funds have totally manipulated that rule for their own benefit, and humongous hedge funds have used the rule to create one sided trading. The uptick rule was at least in place to try and control drastic price falls, the lifting of that rule creates an open window for those same funds to do as they please.
Give it time, you all will understand what I'm saying soon enough.

Hedge funds won't be regulated anytime soon.........too many influential folks have money in them..........

 

[Art G]

Hedge funds won't be regulated anytime soon.........too many influential folks have money in them..........

Exactly! And that's why the uptick rule was removed.

 

[FinanceDude]

Exactly! And that's why the uptick rule was removed.

It's pretty simple..........if the hedge funds had the same rules as everyone else, there would be no competitive advantage, and money would flow back into mutuals and stocks and other things..........

 

[Art G]

I don't know that it is that simple, but there are definitely people in New York that are privy to info that the rest of us aren't, and they have the ability to use that info for huge gains. The rest of us are just hoping to get our little share.

 

[FinanceDude]

I don't know that it is that simple, but there are definitely people in New York that are privy to info that the rest of us aren't, and they have the ability to use that info for huge gains. The rest of us are just hoping to get our little share.

Fuhgeddaboutit!!

 

[Art G]

And worst of all, are the hedge fund employees, with no remorse, who chastise other far less damaging products.

 

[73ss454]

So Art, there's no annuity sales people that chastise hedge fund people?

 

[FinanceDude]

So Art, there's no annuity sales people that chastise hedge fund people?

Some annuity companies use hedging strategies in their subaccounts............

 

[Art G]

So Art, there's no annuity sales people that chastise hedge fund people?

LOL! Thank you for being the conscience of the hedging industry. In my opinion, the difference is that annuities are not destroying the market. One might just say that they are protecting you from the pitfalls of it.

 

[73ss454]

Yeah, that's me, the conscience of the hedging industry.

Let's go back and just say the same thing, buyer beware. No one is bending anyones arm to buy anything. That's what our economy was built on, it's an open market.

Now, to talk about annuity salespeople. They mostly rip off the older amongst us. Hedge fund people don't go to older folks houses and sell products that are total rip offs as our friends the annuity salespeople do. But you know what, I'm OK with that because sales are sales.

For every buyer there's a seller, get over it.

 

[Art G]

Yeah, that's me, the conscience of the hedging industry.

Let's go back and just say the same thing, buyer beware. No one is bending anyones arm to buy anything. That's what our economy was built on, it's an open market.

Now, to talk about annuity salespeople. They mostly rip off the older amongst us. Hedge fund people don't go to older folks houses and sell products that are total rip offs as our friends the annuity salespeople do. But you know what, I'm OK with that because sales are sales.

For every buyer there's a seller, get over it.

Sorry, but you couldn't be more wrong. If you are invested in the market, in all likelihood you are getting screwed over by a large hedge fund, and they're not even coming to your door to sell you anything. At least with the annuity, you have a 10 day free look period.
Here's in a nutshell, the hedge fund is totally and without regard looking to make money via inappropriate means, they only help those who are invested in them, while costing many others. They are using a small loophole in the system in order to manipulate a rule created to help the market to run more efficiently.
The annuity has added insurance fees that may or may not work to your benefit, but can give you peace of mind in down markets, and give your loved ones some security.
Yeah, I can see how they're similar.

 

[FinanceDude]

Yeah, that's me, the conscience of the hedging industry.

Let's go back and just say the same thing, buyer beware. No one is bending anyones arm to buy anything. That's what our economy was built on, it's an open market.

Now, to talk about annuity salespeople. They mostly rip off the older amongst us. Hedge fund people don't go to older folks houses and sell products that are total rip offs as our friends the annuity salespeople do. But you know what, I'm OK with that because sales are sales.

For every buyer there's a seller, get over it.

You have to quit watching Dateline and attending free dinner investment seminars at your local steakhouse...........

 

[Art G]

Tuesday’s D-Day for SEC – and Banks
The Securities and Exchange Commission will decide Tuesday whether or not it will continue its “emergency rule” against naked short-selling a list of 19 banks.
The irony, of course, as Cramer points out, is that naked short-selling any stock is illegal and not just the banks. So there was no need for this special action by Chairman Cox and his cohort.

But here we are, and the SEC’s decision is looming and it’s of tremendous importance. The hedge funds that relentlessly hammered down the banks before Cox stepped in have been put in check only by the attention brought on them by enforcement of this rule. If the SEC decides to let go of its focus on naked short selling, the bear raids would return and everyday investors – and the market – would be in a house of pain.
There’s no doubt the rule was effective, even though at least one of the SEC commissioners doubts its efficacy. But a quick glance at the banks in question shows the never-ending spiral they were in came to a halt once the rule was (re)implemented, and they even went higher. Sure, the bank stocks dropped 4% Monday, most of them, including Lehman Brothers LEHMAN BROTHERS HLDGS INC
LEH


are still trading up where they were before the SEC got involved. As for the banks that were left of that list of 19 names – Washington Mutual WASHINGTON MUTUAL INC
WM


, American International Group AMERICAN INTL GROUP INC
AIG


and National City NATIONAL CITY CORP
NCC


, for instance – they all took a hit.

The bottom line is that no stock should be the target of naked shorting. The SEC needs to do the right thing and make sure that rule continues to be enforced.
“As bad as these prices for the banks were today,” Cramer said, “believe me we will see much lower ones for the financials Wednesday if the SEC does the wrong thing [Tuesday].”

Mad Money: Tuesday’s D-Day for SEC – and Banks - Mad Cap Recap - CNBC.com

 

[harley]

OK, now I'm convinced. If Cramer's saying it, it's gotta be true!

 

[Art G]

Well sometimes the guy makes sense. If he and I say it, it must be true.

 

[Abreutime]

Well sometimes the guy makes sense. If he and I say it, it must be true.

What TV show are you on?

 

[Art G]

BTW, I feel like I'm talking to a group of penny stock traders here. I'm trying to explain the evils of hedge funds, and the response is, "yeah, but look at annuities!"
It's like years ago when I tried to explain to penny stock traders that the CEO's were stealing from them, and their response was, "yeah, but what about naked shorting"! The two have nothing to do with one another, but yet people use this argument for some reason. It's like A+B=2C X 4Y + the hypotenuse of the square root.

 

[Art G]

What TV show are you on?

Captain Kangaroo. I was Mr. Greenjeans.

 

[brewer12345]

What TV show are you on?

"Jackass"

 

[Art G]

Speak of the devil.

 

[73ss454]

Sorry, but you couldn't be more wrong. If you are invested in the market, in all likelihood you are getting screwed over by a large hedge fund, and they're not even coming to your door to sell you anything. At least with the annuity, you have a 10 day free look period.
Here's in a nutshell, the hedge fund is totally and without regard looking to make money via inappropriate means, they only help those who are invested in them, while costing many others. They are using a small loophole in the system in order to manipulate a rule created to help the market to run more efficiently.
The annuity has added insurance fees that may or may not work to your benefit, but can give you peace of mind in down markets, and give your loved ones some security.
Yeah, I can see how they're similar.

Well then, I'm pulling all my money out of the market and buying annuities.

FD, funny but I could eat out every night with the amount of cards I get about free dinners. Now that Art clued me in about hedge funds ripping me off I can find out all about annuities.

 

[FinanceDude]

Well then, I'm pulling all my money out of the market and buying annuities.

FD, funny but I could eat out every night with the amount of cards I get about free dinners. Now that Art clued me in about hedge funds ripping me off I can find out all about annuities.

Well, there's a LOT of "financial advisors" in Florida..........I'm sure there's an index annuity you're foaming at the mouth for..........

 

[Art G]

Well then, I'm pulling all my money out of the market and buying annuities.

FD, funny but I could eat out every night with the amount of cards I get about free dinners. Now that Art clued me in about hedge funds ripping me off I can find out all about annuities.

No! Pay attention! You should be buying hedge funds! Sheesh!

 

[73ss454]

OK, no annuities, buy hedge funds. I got it now, I just need to get me money out of vanguard and find a broker.

 

[FinanceDude]

OK, no annuities, buy hedge funds. I got it now, I just need to get me money out of vanguard and find a broker.

Art G will help you.............