Unregulated Hedge Funds : Recipe for Disaster

Thank you Richards for taking your time to read and comment on my article. And you may be right about the devastation of the U.S economy, the World's hedge fund operator (Alan Greenspan, the wizard of bubbleland, plays much like the game of dice or cards, keeping the trump card always unto himself) and biggest manipulator of currencies, coming up fast from the bottom class of the income pyramid. Though following the US subprime mortgage alarm, some investors have been reassured by rebounding indices and optimistic pundits but the biggest risk of all lies in thinking that risk has been conquered. It has not - it merely slumbers, so long as massive quantities of cheap credit allow the roll-over financing of future rounds of debt. If this slows sharply, the subprime housing turmoil is the tip of the iceberg and with their national bank and finacial institutes, already reeling under immense pressure of balance of debt and floodgate of huge sum of soft credit to the consumers over the years, would be forced to tighten up their belt and freeze further easy and soft consumer credit, which unless bailed out by IMF again (at the cost of developing countries), will spread the bust and severely damage the global finance system.

Readers with a historical bent of mind would undoubtedly remember the story of Al Capone, the country's most famous gangster. Even with the weight of public opinion against him, not to mention the best efforts of law-enforcement agencies, he was finally jailed for tax evasion rather than for any of his violent crimes. In much the same way, the United States Govt. will be held to account not only for its unnecessary wars or its contribution to global environmental damage, but simply because it can no longer pay the bills and hopefully the disenchantment of the general public, unless diverted by another tricky rhetorics(knowing how stupid and gullible ordinary Americans are), will end the honeymoon of the Neo-Cons.