Where does it come from? Over 350 Hedge Funds have over a billion dollars apiece, and there are some 15,250 Hedge Funds in total. This is pure guesswork on my part, but it would seem that a Hedge Fund would require at least a half-million dollars to even involve oneself in the Trade, and at least $3 million to be a stand-alone business entity. It sounds like a tremendous amount of money, and it is; but the most important aspect of Hedge Funds may be their position as Price-setters, due to their automated Buy-orders. The mechanisms allow Stock prices to go up, but provide restrictions in allowing Stocks to drop; adverse Stock information must push through the morass of automatic Buy limits, before it can establish a new floor price for the Stock. One can say that the Buy limits employed by Hedge Funds for any one Stock is so low, that there is little impact on Stock price. The reality states that 15,000 Funds operating in conjunction establishes a basement price for a Stock, especially as Sell orders most often lack magnitude themselves. Artificial shelving prices are created for Stocks, based on very little volume, while Stock and Commodity price increases are quickly integrated into the mechanism, and not easily discarded.
Europe has a long history of dealing with financial disturbance and artificial booms, extending back prior to the French Revolution. They realize that most economic balloons are generated by financial manipulations of unscrupulous Traders, who promise quick Profits from new ventures. These new deals, or planned investment concepts, rarely involve an actual deep entanglement of the economy, mainly involving resident investment funds during the periods in question. The basic structure of the economy, which churn up the investment capital, finds little alteration. Inflation has little tie with economic growth, and suppression of Prices hardly ever provides challenge to long-term economic growth. I agree with the European philosophy, and do not witness any measurable increase in economic growth through adoption of a Plunger mentality; i.e., any plan to promote rapid growth rates.
Boeing is utilizing it paid-for legislators to scuttle the Tanker deal between Northrop Grumman and the Military. Boeing’s basic fault lay in failure to provision the Air Force Decision-Makers with the Perks which cashiered the previous Boeing deal for the Tankers, and this group rejected the Boeing deal because of losses to their planned Retirement portfolios; a process that the Airbus parent company could run an End-around by promise of European employment to decision-makers after their military retirement. Does the previous Statement sound cynical? Perhaps the cynicism resides in the reality of it, bureaucrats resistant to surrender a high-value escape after completion of public service–one of the real employment incentives of such Service. The threat of a little Prison time, or the occasional Suicide, does not dismay Those trapped in a Pentagon office; a position already somewhat similar to a prison term. lgl
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