2010-09-21 - Hugh Hendry - Hedge Funds - Part 1

Part 1 of 3 - BBC HARDtalk interviews hedge fund manager Hugh Hendry, CIO & CEO, Eclectica Asset Management.

Category:

News & Politics

Tags:

• hugh
• hendry
• hedge
• fund
• soros
• paulson
• banking
• bailout
• financial
• risk
• capitalism
• crisis
• reform
• market

[TeifiValley123]

this is a joke, if a bank gets something wrong they dont pay for the consequences. Their have a taxpayer guaranteed insurance policy.

Take as many risks as you like,

Make huge amounts of money,

When we crash the system - who cares?

We'll get bailed out

Repeat cycle.

[friedkat]

@TeifiValley123 - In fairness Hugh is against unconditional bank bail-outs. Banks have succeeded in scaring governments into bailing out failing banks. Having transferred these liabilities onto tax payers, governments are playing the same game with failing countries e.g. Greece, finding it more palatable to have the tax payer bail them out than let them default on their debt; ultimately sparing the French and German banks from taking the hit. So imho Govements are just as much to blame.

[ednan9]

i think hugh is being political here. The equation is simple and the journalist is an idiot. Goverments fuck up --> hedge funds take a position against it ---> then govt blame hedge funds and term them as monster--- well politicans, don't make bad decisions in the first place. Make good decisions and then you will have support of hedge funds when they will go long with your country

[Maino88]

@gjciloveyou Stephen Sackur is not a "moron". He's a very intelligent, sharp and forensic interviewer who is masterful in his ability to play devil's advocate. As a regular Hardtalk viewer, I've seen him tear apart Bob Crow, Oliver Stone, Jeff Sachs...and other figures on the left and the right. He's an accomplished prober.

Hugh Hendry is a breath of fresh air. A true foot soldier in the defence of free markets. He should be applauded.

[ozzzzzzo]

What an awesome interview! Sackur is obviously very well prepared, and his aggressive questions showcase Hugh's brilliance far better than a friendly interview would do.

[afro84]

@afro84 Slight retardation there, I meant that you exports will suffer. :-)

[afro84]

@ednan9 Slight problem with that though; if all of the hedge funds go long with your country then you end up with an overvalued/strong currency, which means your imports will suffer (see Switzerland).

You don't want everyone shorting your country, because then your borrowing rates suffer, but life isn't a beach for the guys that the hedgies are backing. The only exception is Germany that has an undervalued currency and low borrowing rates.

Hedge funds make good or bad situations worse.

[mason72518]

@spectator59 Hendry is right, Germany ought to have the right to ban certain types of trading - and speculators like us ought to have the right to leave the country. Capitalism in the world would allow some governments to pass bad laws and allow others to pass good ones - which would, in turn, attract capital to the regions of the world where it is treated best. For instance, away from Germany and towards a free market. I don't think Hendry failed to stand up for capitalism.

[49fiori]

this guy should read more books and take less care how he looks on TV! He is a joke! Risk takers are lottery ticket buyers, many hedge fund managers are bookies, including this guy. They all lose money in the end of the day, yet the markets always make money. One has to ask a question, how the hell do you lose money when Dow Jones Industrial Average went from $66 in 1920 to 11,871 last Friday!?!?

[Myndir]

Every government knows that transparency/inside trading laws etc. make absolutely no sense, which is why they exempt themselves from them.

[goldencraft]

I completely agree with your comment.

[fliskris]

Thank you.