While sitting on the sidelines watching the economy shudder under the weight of a collapsing housing market, overvalued mortgage-backed securities, over-expansion of credit, asset bubbles, the unwinding of the carry trade, peak oil, and possibly the golden days of a gilded age, the Mortgage Lender Implode-O-Meter has birthed an offspring.

Hedge fund Implode-O-Meter, currently reporting a tally of eleven major global hedge funds who bet on the wrong side of reality.

 I’ve watched the mortgage company tally rise from 11 to a current total of 115 since the New Year – not quite one a day.

Of course few of us are directly affected when a mortgage company goes under. We still have to pay the bill each month, just to someone new who buys up the debt.

But when a hedge fund goes under, it takes with it the savings and investments of many of us, probably unknowingly ’til it is too late. Pension funds, college endowments and others that manage our money invest heavily in these funds.

Now, according to most mainstream media, all is well with the economy. Even the President was wheeled out yesterday to say so himself. He said there was enough liquidity in the markets for a correction. He didn’t say what type of correction.

Hey – I’m an optimistic type. I just want to make sure that people are aware of the big economic picture. Take a few minutes to think about where your savings are and what risks you are comfortable with. Silver is cheap right now, too.

Then, when you feel comfortable, pull up a chair and watch the pillars shake.

Posted in uncategorized on August 10th, 2007 by davetha | RSS 2.0 |