Timmy ElsewhereOctober 23, 2008 Tim WorstallTimmy Elsewhere3 CommentsSpeccie. Why does everyone hate hedge funds and are emerging markets decoupling? previousIce rinks and paedophilesnextThe Poppy Man 3 thoughts on “Timmy Elsewhere” diogenes1960 October 23, 2008 at 4:37 pm it’s simply a manifestation of the stupidity of our current Prime Minister – or if it is not stupidity then it is mendacity on a mega scale. Why does no one pin him back on the factually incorrect things he keeps coming up with and which are now virally infecting the outbursts of his pimply comrades – Mandelson etc? Eg ” we have reduced the public debt”, that banning short-selling saved the world…all that nonsense Robert Scarth October 23, 2008 at 8:19 pm “it’s simply a manifestation of the stupidity of our current Prime Minister” No, I think its deeper than that. There is a visceral negative reaction to “speculators” profiting from downward movements in prices. Its quite amusing to ask someone to justify why they feel like this – why is it ok to profit from increase in price, but not ok to profit from decreases in price; the tortured reasoning is a wonder to behold. I think the underlying reason is a instinctive dislike of someone gaining at a time when the tribe is seen as losing. The problem is due to the framing of the issue. Finance is presented in the media as having the purpose of delivering ever rising asset prices. Any increase in prices is described and presented in a positive tone, any decline in a negative tone. This is utterly pervasive; you would be considered utterly mad if you suggested that ever increasing asset prices was not a good thing. Against this background it is not surprising that ordinary people feel that declining asset prices is bad news for the tribe. Therefore anyone who benefits from this bad event for the tribe is a shifty, untrustworthy sort who must be punished for their disloyal behaviour. That is why hedge funds are disliked. The solution would be to present the (financial) markets as having the purpose of discovering and disseminating information about investments and goods and services. In this light it is clear that hedge funds are doing something to benefit the “tribe”. Short sellers are calling bullshit on dodgy businesses and alerting everyone to poor investments. Matthew October 24, 2008 at 10:04 am I think your emerging markets bit misses the point. For investors the market that is available is the stock market, by and large. So decoupling of ’emerging markets’ could mean just that. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.