Hedge funds

I don’t usually listen to the business news; but today I happened to leave the radio on after the world news and caught the following item.

Hedge funds have discovered a way to make big profits out of the Eurozone debt crisis.

The method is very simple and perfectly legal. The Greek “haircut” was voluntary, apparently because governments didn’t want to risk causing panic. So the hedge funds will buy up Greek debt cheaply. Then they will turn around and say, “We are not part of the voluntary agreement; we demand to be paid in full and on time.”

This is nothing but stealing from the taxpayers who have funded the bailout.

It seems to me that there are some things, like mass murder, which you probably shouldn’t do, even if you can.

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About Peter Cameron

I count all the things that need to be counted.
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3 Responses to Hedge funds

  1. Laurent says:

    You would think so, but greed is the most elastic sin ever.

  2. Gordon Royle says:

    Well maybe the Greek referendum will mess up their little plan!

  3. Klas Markström says:

    I found this lecture on the broader issue quite interesting
    http://buttonwood.economist.com/post/11363816575/bagehot-lecture-buttonwood-2010

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