 The Wild Wild World of Wealth |  |
What happens when it’s insanely profitable to lose money?
Huh?
Last Friday, ProPublica described how one hedge fund—Magnetar—invested in the toxic waste from sub-prime mortgages no one else wanted. And it made wads of money. The story is long but well worth your time. The Magnetar Trade illustrates: the capital markets are a new-age war; deception is a tactic; and the old Trojan Horse play is still in vogue. Here’s how the trade works in three easy steps.
The E.U. is getting tough with member nations according to The New York Times. Strong warnings to Germany, France, Spain, Italy, and the Netherlands. Get your your budget deficits in order, or else…. Excuse me if I don’t buy it. Here are three things you must know about the E.U.’s track record:
The Death of Insider Trading II On Thursday, prosecutors charged fourteen more people with insider trading. The defendants all have links back to Galleon, in a corrupt web growing broader by the day. Acrimoney pays especially close attention to behavior on Wall Street and inside Hedgistan. Today’s story falls into our favorite category: You can’t [...]
I’m struggling to find answers—explanations for why illegal behavior can endure so long under the noses of our investigators.
I’m afraid our anger will lead to unintended consequences. It will exacerbate the impact of uneven regulation among financial institutions—an imbalance that undermines the long-term integrity of our capital markets.
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