Despite the Mortgage Crisis, Hedge Funders Are Still Raking It in

Despite the Mortgage Crisis, Hedge Funders Are Still Raking It in.

By Sarah Anderson, AlterNet. Posted August 29, 2007.

The little guys may be hurting, but fear not for the titans of capital.

You’ve probably been staying up nights worrying about how hedge fund managers are going to weather the credit crunch stemming from the subprime mortgage storm. These men are expected to really suffer since they borrow so heavily to finance their gambling in global financial markets. Many were also stuck with piles of mortgage-backed securities when these paper assets plunged in value. A few funds have already stumbled, and Moody’s credit raters have warned of a 50-50 chance that one of the big ones will crash soon.

For these troubling times, some reassuring thoughts:

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