Monday, August 13, 2007

Still rumbling

Goldman injects $3bn into quant fund

After all the madness of last week, there are still rumblings. Could these guys be the next Bear Sterns? The question is, will: a) the market recover and the squall blow over; or b) head downhill from here; or c) dash for a peak and then crash. A group of investors led by Goldman Sachs said on Monday it plans to inject $3bn into the investment bank’s Global Equity Opportunities fund after it suffered heavy losses in last week’s global market turmoil. The move comes amid widespread speculation about broader losses in Goldman’s asset management business, which operates some of the world’s largest hedge funds.

Posted by dohousescrashinthewoods @ 02:44 PM (947 views)
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4 thoughts on “Still rumbling

  • tyrellcorporation says:

    It’ll be interesting to see how the markets react to this. If I was an invester I’d be pulling cash out mightily quickly!

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  • This may be what they fear by not injecting more………

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  • Again, this system is a bust.

    There are fundamental problems with it that have been allowed to fester for far too long.

    Things have gone quiet because so much money has been printed and put into the market that of course, people can temporarily pay their bills.

    In reality there are large risks of hyper-inflation and the most important thing is that markets are allowed to teach lessons to people on how to invest their money.

    If these lessons are not allowed to be taught then the system crash will be all the greater when it comes.

    The longer they “inject” liquidity, the worse off everybody will be in the long run.

    It will be a matter of days(at least days after they stop printing money) when we will be in the same position again. What happens when you reduce the injection amounts to zero, only to have to inject more again.

    NEVER, EVER raise on a busted flush.

    The risks here are beyond enormous. The bankers have been watching too many casino programs and are risking all for everybody on a game of pitch and toss.

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  • hedge funds.

    That’s the killer. Highly leveraged against highly leveraged. Totally impossible to quantify. Nobody knows what effect it will have, but a $3bn bail out looks nasty from where I’m sitting.

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