Tuesday, May 15, 2007
Steven Drobny's book, "Inside The House Of Money"
The Telegraph: The secret world of hedge funds
2 great quotes from the book.
"At some point, we will have the Big One. It's out there. I don't know whether it's financial asset depression, or a real depression. Financial assets can't keep doing what they're doing, with so many people rewarded for being imprudent"
"When you look at the whole world and see what it's built on, it is totally, clearly not sustainable. I get so bearish that I think about buying a castle in Scotland and moving up there with a couple of loaded shotguns and a truckload of canned food"
Posted by sold 2 rent 1 @ 04:47 PM (339 views) Add Comment
8 Comments
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1. nearly30 said...
Good article - very amusing!!
2. denzil said...
>>so many people rewarded for being imprudent
I do wonder whether being prudent will be rewarded in the long-term or whether hyper-inflation will consume the debt bubble if the brown stuff hits the fan.
3. Denzil said...
>>so many people rewarded for being imprudent
I do wonder whether being prudent will be rewarded in the long-term or whether hyper-inflation will consume the debt bubble if the brown stuff hits the fan.
4. Skint Academic said...
Hey, I want to buy a castle in Scotland and move up with there with a couple of loaded shot guns and a truck load of canned food regardless of the economic climate. In fact an economic boom makes me want to do it even more as the arrogance of those riding the latest bubble (e.g. BTL'ers) can be too much to stand. At least you can laugh at people during a depression :)
5. sold 2 rent 1 said...
denzil,
Good point. That is why everyone should own some gold. Good for hyper-inflation and depression
6. enuii said...
IMHO hedge funds are the last great surge of the economic bubble before it pops.
Buy a company, sell its tangible assets and take the money, take out a big bank loan and syphon off a good proportion of it and leave the company with the liability for the repayments, then sell the company on to A.N.Other.
Never has the redistribution of wealth been so blatantly immoral and unsustainable.
7. Hedger said...
"6. enuii said...
IMHO hedge funds are the last great surge of the economic bubble before it pops.
Buy a company, sell its tangible assets and take the money, take out a big bank loan and syphon off a good proportion of it and leave the company with the liability for the repayments, then sell the company on to A.N.Other.
Never has the redistribution of wealth been so blatantly immoral and unsustainable."
You are thinking of private equity. I run a hedge fund and I have never bought and asset stripped a company. However, I do think you are correct that hedge funds are the latest bubble - well, certainly hedge fund managers pay.
For what its worth, I think things will end up very ugly.
8. Rapa said...
If we look at the current World Economic Situation, you would notice that asset price bubbles are everywhere and everyone wants to get a slice of it before the bubbles burst but I presume no one is certain when the music would stop and then you could be the last one without a chair.