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  • From: Clansgian AT wmconnect.com
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Inflation --commentary
  • Date: Mon, 29 Sep 2008 11:33:26 EDT



> >The Hedge funds are already standing in line. Year end withdrawal
> notifications will be starting on Wednesday. There is a fear of a run so
> the Hedge Funds are trying to get in on the bailout and not get hind teat.

There is a principle that governs hedge funds, stocks, and all such
stragegies. If you have 1000 people who each have $1000 in a stock, that
stock on
paper is worth $1 million. But unlike an actual $1 million of cash or
tangible
goods where each person could get their individual $1000 and it would not
affect the others, only the first very few, generally not more than 5%, can
get
their $1000 out of the stock. After that the "value" of the stock goes down
in
the absence of new buyers until half the people would get nearly nothing.

If that were the source of one's wealth and future security, it would be very
tempting right now to be one of the first to get out of Dodge. </HTML>




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