Lest anyone forget, hedge funds played a large part in the unprecedented loss of wealth that occurred in the financial crash of 2008-2009. And now, like tragic brain injury cases incapable of learning anything new, hedge fund operators are setting the stage for a repeat performance.
A lot of financial observors think that these institutional investors -- who are betting other people's pension money, university endowments, etc etc -- are making a big mistake. Many sophisticated investors are betting on a significant downturn. Some observors even see the next ten years as the decline and fall of the American empire.
Over 1.5 million Americans filed for bankruptcy in 2010, and the count for 2011 is expected to be higher -- perhaps much higher. Wages, employment, and non-government related startups in the US have been declining steadily, and the ongoing housing collapse reflects this decline.
And rather than working constructively to make America friendlier to business and markets, the Obama regime has been spending most of its time and resources on making government bigger and more corrupt, and on starving US industry of its energy supplies using the great climate hoax as a pretense.
Waiting in the wings is the potential for cascading bond defaults by US States and European nations. If that happens, the great 2008-2009 wealth destruction will look like a pleasant holiday in comparison.
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