Sodium Haze: 'Vulture Funds' move back into debt game

Sunday, 12 June 2011

'Vulture Funds' move back into debt game

Followers of The Haze will remember that we have been covering quite a lot of trader opinion in The City that thinks that another financial crisis is on the way.

They are all quite sanguine about it - and why should they worry - their money making activities in the 'gambling economy' get more exciting when there are bank bailouts and instability - and the tax payer is good for the debts of the system as a whole.

Ramping up for the next crisis we see gamblers and speculators moving back into the 'debt market' - as vulture funds get back to business as usual.

The [Sunday Telegraph] had some illuminating news this morning as $5 billion heads for the casino we underwrite as tax payers.

BLACKSTONE and Avenue Capital are separately raising a pair of new funds that will invest $5bn (£3.1bn) in the debt markets....

...The “vulture” fund will target and buy up the debt of companies involved in reorganisations or close to bankruptcy, with a view to benefiting from future restructurings.

This is how money is made in the 21st Century - not by people who provide any real service or product but by debt speculators who just use money to make money while draining the real economy of funds, creating debt and generating financial instability which we (taxpayers) pick up the tab for.

Its time for monetary reform and to outlaw the global derivatives trade.
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