Billion hedge fund losses in the West

Hedge funds at the level of Western countries, which was usually seen as the best investment tools with the ability to return fast, did not succeed to the test difficult resulting from the collapse of the current hit world financial system to incur those funds losses of up to nearly 180 billion dollars during the last three months of age of the crisis, the report also refers to the “New York Times.” Vsnadik hedge which is estimated to total assets in the West is estimated at 1.7 trillion dollars, which is based on short-term investment in securities and as a safe haven for funds to cope with unexpected twists on the already limited to a limited class of owners of wealth experienced.

However, in light of the current collapse of financial markets is seeking the owners of investment and wealth and the most affected to search in earnest for the best way to flee from those funds. And refers in that regard the report of a special set of “Hedge Fund Research,” Research to the erosion of about 217 hedge fund on the level of the world during the last three months.

The report of the American newspaper, which reported in the “Cheina Daily” to do some public funds for pensions and institutions in recent years to pump billions of dollars to hedge funds that are not subject largely to the supervision and regulation, which led to widespread losses so that it no longer confined to the financial district and business in New York, the President admitted the former Federal Reserve Alan Greenspan, who was one of the greatest advocates of the western financial system mistakes in the free market confidence in the ability to provide regulations for the financial sector. The Greenspan who retired from office in 2006, in a speech to members of the Housing Committee of Congress that he was wrong in assuming that self-interest of institutions, especially banks and other sectors will be better able to protect their shareholders and their capital in the companies. Greenspan warned of the economic consequences of the current financial crisis, pointing out that he can not work to avoid the increase in staff layoffs and a rise in the unemployment rate. Greenspan stressed that he sees no choice but to apply the legal standards of quality and that some types of securities.