One Word -- Panacea


“Making millions — or even a few billion — by managing a hedge fund has been a running dream on Wall Street in recent years. But suddenly even the masters of this $2 trillion universe are falling on hard times…

“Hedge funds, those secretive investment vehicles for the rich and, increasingly, the not-so-rich, are supposed to make money whether markets go up or down. But many of them are being swept up in the turmoil in the financial world.

“The funds’ investment returns are sinking, and so are those big paydays for their managers, whose riches have helped redefine modern notions of wealth and helped drive up the price of everything from Picassos to Manhattan penthouses.

“Several big funds have faltered in recent weeks, some of them spectacularly so...

“The dimming fortunes of the industry have implications far beyond the rarefied world of hedge funds. Over the last decade, the size of this industry grew fivefold, as public pension funds, corporate pension funds and university endowments poured billions of dollars into these vehicles, in hopes of market-beating returns.

“A prolonged downturn might prompt some investors to rethink these investments...

“‘Everyone is looking for a panacea, everyone is looking for a quick way to make money fast, and everyone is pinning their dreams on the backs of these hedge funds,’ said Dan McAllister, the treasurer and tax collector of San Diego County... ‘But maybe it’s time to be a little cautious, and it’s time to look at things with a more discreet eye.’”

(“Hedge Fund Glory Days Fading Fast.” Louise Story. nytimes.com: September 12, 2008)


NOT EVERYONE! We certainly hope, we hope with some certainty, that all of us are not so insecure as to chase feverishly after sure things, cure-alls, and that which will solve all problems and prolong life indefinitely.

When they tell us, "We've got it all figured out," or "It's a lock," or "Things are different this time," or "The (old) rules don't apply here..." either head for the hills, or cling nervously to your shaman.

Oh, what did you see, my blue-eyed son?
Oh, what did you see, my darling young one?
I saw a newborn baby with wild wolves all around it
I saw a highway of diamonds with nobody on it,
I saw a black branch with blood that kept drippin',
I saw a room full of men with their hammers a-bleedin'...
I saw ten thousand talkers whose tongues were all broken,
I saw guns and sharp swords in the hands of young children,
And it's a hard, and it's a hard, it's a hard, it's a hard,
And it's a hard rain's a-gonna fall.
(Dylan)

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