Hedge Funds and Jobs

Dave Inverson provides a good Post on the risk of Hedge Funds with very good links to other work. The real problem is the concentration of wealth not actually owned by Hedge Fund managers, who are inspired to high Risk-taking to attain the Profits of which they draw around 2% for Hedge management. The industry is far greater in Wealth concentration Today because of previous success and draft of Investors, the Managers concerned with keeping both. Mark Gilbert suggest that Hedge Fund managers are getting erratic, as Hedge Fund investors lean
toward leaving because of the low Hedge Fund yields. Thanks to Felix Salmon for the link.

The Job market has a slow gain, but the previous two months of Job Hires were revised upwards; now to determine the Job destruction over the last three months(???). The Unemployment rate is way down at 4.4%, and Wages are up almost 3.9% year over year. It all sounds good, but Consumers don’t seem to be spending the increase (something not really bad–the Savings rate was only $15 bn short of being positive last month). The Christmas Season will tell the Story, as I have said before. lgl