headge funds: this week is important, page-2

I like to add that share prices of some Banks are even now high enough, so if they in turn are pushing cash into some Hedge Funds which they prepared in the first place and already have stakes in, I would'nt worry too much about that.

Sure, the resets of Mortgage interest rates will take place over a considerable time which is probably a good thing as far as the overseas investor in US equities is concerned (I don't hold any DOW or S&P stocks).

This way, the Central Banks and Govts can spread their policies over time. That is preferred above resetting all the relevant mortgages in a hurry.

Of course, the damage to US house prices is another matter altogether I tend to keep this subprime quite separate from the damage to credit markets.

Meanwhile, China, OPEC, Russia are sitting on hefty cash balances and they are well placed to deal with a falling market. Without them, the situation would be different indeed.

Demand for metals and uranium is continuing as well; the influx of cash into China is continuing so I doubt that the gyrations in the US or EU will make much impression on them except it will give them opportunities to invest or take over companies.

Overall, ignoring the noise and paid headlines, the current situation could have been worse, IMHO.

Gerry