Probably alot of amateurs running the big funds.Bunch of pussies...

Probably alot of amateurs running the big funds.Bunch of pussies if u ask me.Problem is there isn't any proper leaders in the industry.The industry imo needs a mega shake up.Get rid of some of these fund managers especially the ones that "think" they can manage the millions and billions of $$ where in reality they are all sheep with no proper direction. The blind leading the blind and thinking the end of the world is nigh.Overreaction is 100% on the money, cause these guys arent thinking to far ahead.We should be the leaders yet we keep following the tradition for many years and taking the lead from wall street and overseas markets.There the ones with the big problems not us!!

Australia by far is the lucky country and we all no the reasons for that.The fact is that the USA led the world downturn with their sub prime lending; the roots of sub prime dating back to approx 1994 and negatively impacting the market from mid to late 2007 i.e. the dominoes start to fall and we were in for a rough ride.

So basically the US packaged these loans and sold them off in parcels that were too good to be true really. What they did was offer loans to people who were unemployed, or lacked capacity to repay their loans by using the premise that property prices will out grow the unpaid interest accumulating on the loans. When borrowers came out of their honeymoon rates, they were expected to be financially stable enough to start making payments on their loans and with anticipated property prices expected to sky rocket, it was supposed to be a safe investment.Well that was the pitch.So when these so called loans were sold to Super Funds, hedge funds and other investors in various lots guarantying them a rate of return, it was all in for a quick return and big bucks. Greedy really! What they didn’t expect was an economic downturn, high inflation, over supply of property and the whole thing went to sh##.Back then, it was the shear sophistication of investment models and technology, causing an impact that was not foreseen, even though it was inevitable.The thing is that all banks world wide bought into these packages.On top of that Banks started to bank role some really huge investments into private businesses and other investment companies which mainly dealt in property.

What you are witnessing today is a typical 10-12 yr economic cycle that is statistical. It all begins when the dust settles, confidence re emerges in the market, banks get comfortable, drop their lending policy, money gets thrown into the economy and the banks over commit their exposure in property both commercial and residential. This causes inflation, we over spend as we find easy money and so the cycle goes.

At the end of this cycle we have a mini crash and or recession and then we bounce back.Nothing has changed except fund managers focusing way to much on short term noise and not being leaders in the industry and looking say 5-10 years ahead because most of these losses can be avoided its really just a matter of re-programming the way they think and saying yes we have factored all this nonsense in for the next 5 years.Now it's time to get on with the show, but slow and steady wins the race.No need to overreact and continue this childish, amateurish behaviour, after all they are professionals or so called professionals ....really??...I'll leave that one to you.