5 replies to this topic

[duke_Qa]

So, hedge funds, they are high-risk high reward kinda things. The manager gets a percentage of what the hedge fund makes when it goes well, and if it goes sour, they usually have borrowed at least 90% of their real value... So they only need creditors to demand back 10% of their value before they go bankrupt.
Anyway, John Paulson personally netted more than $5 billion from profits last year. Compare it to the wages paid out to the 36000 bankers of Goldman Sachs, which got $8.35 billion dollars, and you could say that it is quite a bit of money. The article also contains a graph showing the growth of Hedge funds the last ten years:



Basically back at 08 levels these days. Personally I am somewhat skeptical to say the least, Whenever people net sums like that I don't understand why the people at the bottom are the ones that have to pay when things go bad. Hopefully the new reforms make sure that these guys put off some of their investments for some anti-crisis fund. Kleptocracy in the style of Middle-eastern and Russian governments should not be allowed to grow.

Edited by duke_Qa, 01 February 2011 - 09:25 AM.

[Vortigern]

Don't hate the player, my friend, hate the game. Dude's just making a living. That said, I assume his version of 'living' involves private Iron Maiden concerts on jets with drinks served by unbelievably attractive women from all around the world who also act as his harem and each run one of his mansions, each of which is on a private island, even the ones in landlocked parts of the world. With that much money you can afford to dig a massive hole, fill it with water and then put a private island in the middle of it. That's living the dream.

Hey, if this guy's so amazing at this, why hasn't some government given him a bunch of money to invest to get them out of the recession? Or does it not work like that?

[Ganon]

Hey, if this guy's so amazing at this, why hasn't some government given him a bunch of money to invest to get them out of the recession? Or does it not work like that?

Heh heh, no I don't think so.

[Vortigern]

Why not? If governments ran themselves a little more like businesses perhaps the entire world wouldn't be in debt.

[Mathijs]

You sound like Berlusconi there.

[Ash]

Well do you imagine that any government the world over would be able to make as big a success of it as him? I sure don't.

Much as I loathe gravy-swilling fat-cats' absurd level of greed, if I had to entrust my money to anyone to invest, it'd probably be this fuckpig purely because the return on my investment would be good.

As it is, my government invests fuck-all in the only people between it and certain anarchy, invests fuck-all in the people who they are purportedly elected to serve, and instead fritters it away on some other bastard's countrymen, or pointless "initiatives" that ought to be called "blatant lies". They certainly lack any sort of initiative.