The hedge fund parasites

[IndianaGreen]

The hedge fund parasites

Petrino DiLeo looks at how the worst economic crisis in 70 years turned out to be a terrific opportunity for the hedge fund managers of Wall Street.

April 8, 2010

THE TOP 25 hedge fund managers in the U.S. earned a collective $25.3 billion last year, setting a new record for the industry, according to a study published last week in the magazine AR: Absolute Return+Alpha.

Yes, you read that correctly. Twenty-five people earned an average of $1 billion each--for one year's worth of "work."

"The world may still be coming out of the Great Recession, but for the richest hedge fund managers, 2009 was the best year ever," the magazine wrote. "And it couldn't have happened without the carnage of 2008."

How did they do it? The short answer is this: A number of hedge funds made big bets that the politicians in Washington, D.C., wouldn't let their buddies on Wall Street go down.

In late 2008 and early 2009, when the financial system was on the precipice and stock prices were tanking, hedge funds loaded up on the preferred stock and bonds of the big Wall Street banks. They assumed that the U.S. government would save the day--and they were right. As a result, hedge fund bosses profited mightily by riding the financial system's taxpayer-financed recovery.

http://socialistworker.org/2010/04/08/hedge-fund-parasites

[unabelladonna]

1. this is sickening

words truly escape me. hedge funds are the true parasites. not surprisingly, many politicians after leaving office (or relatives OF politicians) become employed by these thieves. i could never understand how many DUers gave john edwards a pass when he went to work at a hedge fund.

[Enthusiast]

2. Sickening is right. nt