1000% hedge fund wins subprime bet - Investors fear

1000% hedge fund wins subprime bet -- Investors fear recesssion

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A Californian hedge fund has made more than 1,000 per cent return this year by betting against US subprime home loans, making it one of the world’s best-performing funds of all time.

“Our entire banking system is a complete disaster,” he wrote. “In my opinion, nearly every major bank would be insolvent if they marked their assets to market.” He also said he would be putting some of his own profits into gold and other precious metals.

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[edit on 26-11-2007 by anhinga]

This is the biggest 'stock' advance in the history of the markets, these 'speculation' stocks are rooted in valueless entities that divert money to the rich through 'futurisms' that have no place in a physical economy; from the additional link:

“Recession is getting priced in,” said Jan Loeys, economist at JPMorgan, adding that markets went into “virtual panic mode” last week. “Pressure is building for central banks to become a lot more active and vocal [this] week if they want to avert a collapse in credit markets.”

Lawrence Summers, former US Treasury secretary, writing in Monday’s Financial Times, says: “The odds now favour a US recession that slows growth significantly on a global basis.”

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