Privatising Profits, Socialising Losses
Free market theory argues that hedge funds,…currency speculation, private equity firms and the other obscene money making machines are somehow vital to…the economy…. [This] is a joke. They contribute nothing…and are merely a means by which the super-rich get even richer. Real economic wealth is created by the working class who…create the goods and services that are vital to society…
(from Hedging their Bets, DA39 summer 2007)
Almost totally lacking in regulation – that is, until the recent “stable door bolting” emergency restrictions against “short selling” and betting on declines in financial markets – hedge funds and their ilk have constantly moved trillions of dollars around the globe searching for ever higher returns and leaving economic chaos in their wake. And so it has proven yet again.