How come "they" always seem to be willing to bail out hedge funds?

[Phoebe Loosinhouse]

For reference google Long Term Capital Management.

Even though the S&Ls can fail and take down half of America with them.

Hedge funds exist only for the wealthiest of the wealthy - check out their fees and the required minimums to get in. These are people playing poker at the highest stakes table in the finance world. But they just can't handle it if they have to fold because they played the hand wrong. And they would like the rest of us have to bail their sorry asses because they are "too big to fail". They are never "too big" when they succeed and they don't offer to share the profits then with the rest of us. Screw them. If they love privatization and no regulation so much, let them eat the bitter fruit when it fails.

No one bails out Joe and Mary Shit when they lose their jobs and their home - why aren't they "too small to fail"?

[partylessinOhio]

1. "Social Program" for the wealthy?

You bet!

The Feds put in money 4 times since yesterday to protect these babies.

[sam sarrha]

3. for the PRIVILAGED.... there is a difference

[AX10]

2. I know what your saying.

It's maddening, sickening, and sad, all at the same time. I don't care if some prick with 20 million in the bank loses half of their money. They have more than enough to live on. Hedge Funds are one of the ultimate ponzi schemes out there. I was shocked to read that Warren Buffett invested in one of these. He lost 600 million dollars. A small sum by the amount of money his company brings in every year, but still, it was one of his dumbest moves ever.

For the record, those who want to invest in a hedge fund need to have at least:
-1 million dollars in liquid assets
-200,000 annual income for the past 2 years (300,000 for married couples)
-Minimum investment og 500,000 dollars

Fees can range from 10% to 33%. Also, there may be an upfront flat fee that has to be paid in order to invest in the fund.

[napi21]

4. I assume you're talking about the Fed infusion of $$ in the market today.

Yes it did help out the hedge funds, but you also have to remember that because so many average workers have 401k's now, it's also helping them! If there was a REAL HARD CRASH of the markets, ALL of us would be far more injured than the ultra wealthy who would, as you said, still have enough $$ to live quite comfortably.

I know my husband is retiring next year. We have a whopping $170,000 in 401k money. I've been watching the balance every day for over a year! We've lost $14,000 in the last 3 weeks! Do you have any idea how many years it took to EARN that much in a 401k?

I'm GLAD the Fed is trying to do SOMETHING!

[Phoebe Loosinhouse]

5. No, I'm happy that the Fed poured money in to save many of us

and that's not exactly what I am talking about. They always seem MORE willing to intercede when the hedge funds and their wealthy buddies are getting singed. I did reference Long Term Capital Management to give a bit of historical perspective. A Bear STearns Hedge Fund failed and a couple of Goldman Sachs Funds seem to be against the wall. My only point was, they only seem to get really hot and bothered when the hedge funds are threatened - in other words, the old boy's club rallies together to protect each other when really really big bucks are involved.

Believe me, they don't have their money invested in the penny ante mutual funds we are offered in our 401Ks.

By they way - you should be able to do something constructive and move your money around in your 401K, even if it means just moving it to Money Market accounts (which almost all 401Ks have) in order to temporarily protect against some of these losses. Americans are always eternal optimists and will always say "I'm sure it will go back up" even when they lose 15, 20 30% and more of value. Remember the poor Enron folks who watched their investment go to zip.

I am not trying to make people panic. But, in the last stock market correction in the late 90's, there are a heck of a lot of people who wish they were willing to accept a 20% loss as opposed to a 50% percent loss or more (I'm one of them)before they moved to safer havens.

The stock market is risky. The last few weeks have proved that. If you are close to retirement, you'd be a lot better of with your money in CD's and TIPs and municipal bonds, although your broker might tell you differently. I am not a financial consultant or professional and my opinions are based on my own personal sorry experience.