Monday, 19 July 2010

Hedge Funds.

Sorry to harp back to the same issue of the destructiveness of hedge funds and short selling which is basically gambling our money away. I have blogged here, here and here about Hedge funds and their contribution to the financial crisis and the recession. The Hedge Fund managers don't seem to have learnt any lessons whatsover from their destructive behaviour, they are now busy speculating around the prices of commodities especially foodstuffs. Not only are they affecting thr incomes of poor third world farmers but also forcing up the prices of coffee and other foodstuffs in the West and pushing up inflation at the same time. What is worrying is that these speculators can have a detrimental effect on the global economy and the Con Dem government have no more interest in regulating these speculators than Labour. Angela Merkel has shown the way in Germany but she hasn't gone far enough. Even Barack Obama has succeeded in passing a Financial Regulation Bill which will go some way to curbing these speculators.
Why are the Con Dems like Labour so reluctant to regulate these cowboys, nothing to do with the fact that most Hedge Funds are based in London is it.

1 comment:

Royston Jones said...

The problem for any UK government is that the financial sector makes up a bigger proportion of GDP than in any other major economy. Consequently the City must be treated with kid gloves.

UK governments fear that if they're too hard on these gambling dens they'll move somewhere else. They can't afford that because of the massive contribution these institutions make to 'the UK economy'.

It could therefore be argued that these speculators, effectively, run the UK. A comforting thought that leads to all kinds of idiocy. Such as wind turbines being given 100% and even 200% subsidies. They won't keep a single light bulb burning but who cares about the dark when you're making all that money and don't live here anyway!