Jacob Zamansky, of Zamansky and Associates, a New York-based
securities arbitration firm, writes,
"Many argue that failure led to the worldwide credit crunch.
On Aug. 1, Zamansky & Associates filed the first arbitration case on
behalf of a group of investors who claim that Bear Stearns misled them
about the extent of subprime exposure in the hedge funds,
misrepresented the "risk controls" which were in place, and
misrepresented the performance of the fund during calls held with
investors from January to June of last year, which were designed to
keep investors in the fund and dissuade them from redeeming their
shares."
When a hedge fund belches and the stench of it can be smelt around the
world, something is terribly out of whack. That these super-secret
societies of the absurdly rich are the largest investors on Wall
Street is a frightening thing. The very nature of their business
suggests they plan to capitalize on failures as much as they do
successes. Many are little more than gluttonous vultures picking the
bones of the dead or dying.
That vulture analogy is only half true, of course, since they often
participate in the "kill." Some prefer to call them sharks. Either
way, they are unsavory and dangerous creatures.
That a hedge fund could falter and send the financial world into a
frenzy is truly frightening...and just another indication that change is
more than needed; it is essential to our very survival as a
prosperous, world-leading society.
That's the Word on the Street.
Veracity Jones,
http://www.basherbusters.com/
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