[...] This was a year where any trade you had on that other hedge funds had on, that was a popular hedge fund trade, performed poorly because there were other hedge funds that were forced to unwind that trade. [...]
Meanwhile, the U.S. government has extended so much aid to various other sectors of the economy, and it’s expected to have to do more, that now people are worried about U.S. credit. To buy credit protection on U.S. government debt now costs you more than to buy credit protection on Campbell’s soup!…
This is not a crisis that was caused because there was a drought, or because a meteor hit London and obliterated it, or because there was a war that destroyed productive capacity. This is because there was a misallocation of resources, because people had too much of that neurotransmitter in their b…
One thing is when the short-term credit market ground to a halt [in October], a huge percentage of the bulk cargo ship fleet just went idle. Trade just wasn’t happening. It felt apocalyptic. The system had ground to a halt. Now you’re getting the hangover of that. Companies that had to stop operati…
One thing is when the short-term credit market ground to a halt [in October], a huge percentage of the bulk cargo ship fleet just went idle. Trade just wasn’t happening. It felt apocalyptic. The system had ground to a halt. Now you’re getting the hangover of that. Companies that had to stop operati…
