Quote:
Originally Posted by BYU71
market since it hit 14,000.
If you watch business shows or read the paper you will get all sorts of reasons. Oil prices hitting new highs. Housing market in a slump. Some are even saying the dropping interest rates are the cause, because there is a flight to quality from the market.
My best guess is we are going to hear about some hedge fund managers have gotten in trouble again. In the short term it has been my experience short term dramatic swings are caused by screw ups by people who have control over way too much money.
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I don't know if I was right or not, but Bear Stearns announced in the last couple of days it has a hedge fund that will not be honoring redemptions. I guess the fund is in trouble.
You hand young Harvard MBA's 90 million dollars and say, see what you can do. What do you expect.
Disclaimor: I don't know for a fact they were Harvard MBA's or in their 20's. I do know though John Edwards got paid to advise hedge funds and Chelsea Clinton works for a hedge fund.