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Why some market regulation is necessary and good for the economy


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2007 Jul 30, 4:16am   15,090 views  125 comments

by HARM   ➕follow (0)   💰tip   ignore  

We've had many posts on Laissez-Faire, anarchic capitalism vs. regulated markets here before, and I'm sure we'll have more in the future. Just saw this gem today (nod to Ben Jones) and wanted to share it with you. Here is a succinct real-world example of why I believe that some government regulation of credit/capital markets is necessary and good for the economy, and why private firms cannot always be trusted to "self-regulate" all the time.

Fund manager's fun sailing away

John Devaney, the CEO of United Capital Markets, a fund that specializes in buying and selling bonds that are backed by the mortgage payments, particularly adjustable rate subprime mortgages, has put his 142-foot yacht "Positive Carry" up for sale, according to a yacht broker's Web site.

Devaney's fund has run into trouble lately. A spokesman for the firm told Reuters on July 3 that it had stopped honoring request from some of its investors for redemptions, or withdrawal, of investments

"The consumer has to be an idiot to take on those loans," he said. "But it has been one of our best-performing investments."

Discuss, enjoy...
HARM

#housing

« First        Comments 121 - 125 of 125        Search these comments

121   Randy H   2007 Aug 1, 1:48pm  

Can you guys tell us, specifically, how the hell this shadowy "PPT" is able to do these trades, even though apparently wiki and everyone in the blogosphere knows about it? Yet they mystically defy arbitrage? If this is true, then it's too good to be true. I'll go raise a couple billion and start my own macro hedge fund.

122   PermaRenter   2007 Aug 1, 2:11pm  

>> I’ll go raise a couple billion and start my own macro hedge fund.

If you do that, you will be rewaded by Federal Reserve with billions of dollars of free money.

123   Peter P   2007 Aug 1, 5:40pm  

Can you guys tell us, specifically, how the hell this shadowy “PPT” is able to do these trades, even though apparently wiki and everyone in the blogosphere knows about it?

This shadowy group uses shadowy methods including, but not limited to, black magic, voodoo, and animal sacrifices.

Members of this elite group are also known to travel in black helicopters.

124   sa   2007 Aug 1, 11:33pm  

from CNBC,

trader: Merril Lynch & Goldman did the buying y'day. he said, there were a lot of shorts and they were forced to buy.

i didn't understand exactly what he meant.if someone here could explain what he meant, i would appreciate.

125   Different Sean   2007 Aug 1, 11:53pm  

maybe something to do with Bohemian Grove or the skull and bones...

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