hedge funds

The Leveraged Buyout of America

"Government cannot prevent nature from taking its course."
David Rosenberg, chief North American economist at Merrill Lynch

"Hedge funds are now targeting each other. Morgan Stanley and Goldman Sachs, who made obscene profits by shorting stocks in the past, are vociferously against the practice now that their stocks are the ones being destroyed." - Bruce Goodman

"Oil prices are largely not determined by supply and demand but the trading desks of large Wall Street firms." - Michael Masters, hedge fund manager

"Hedge fund riches helped inflate the price of everything from modern art to Manhattan real estate. Top managers raked in billions of dollars a year, and managing a fund became the running dream on Wall Street" - Louise Story 10/22/08

A hedge fund is a private investment fund.

Hedge funds are not subject to any direct regulation by the SEC, the National Association of Securities Dealers (NASD), now the Financial Industry Regulatory Authority (FINRA), or any other regulating commission.

Hedge funds may hold long or short assets, enter into futures, swaps, short selling schemes, structured investment vehicles and derivative contracts.

Structured Investment Vehicle

Some hedge funds focus on other financial instruments including commodity futures, options, and emerging market debt.

A security may be an electronic entry in a software system that is fungible - you can trade it for an electronic entry in a different software system.

As hedge funds typically lever debt to invest, the positions they can take in the financial markets are larger than their assets under management.

Only 17% of hedge fund managers see an economic downturn as a bad news.

Marc Rich

Fugitive trader

Marc Rich Tied to Russian Mafia?

Marc Rich, the man who invented the spot-oil

1974 Marc Rich & Co. AG founded by commodity traders Marc Rich and Pincus Green.

1994 After failing to take control of the zinc market and losing $172 million, Rich is forced to sell his majority share to Glencore International.

2005 ABC Radio reports Glencore "accused of illegal dealings with rogue states: apartheid South Africa, USSR, Iran, and Iraq under Saddam Hussein", and has a "history of busting UN embargoes to profit from corrupt or despotic regimes".

CIA claims Glencore paid $3,222,780 in illegal kickbacks to obtain oil in the course of the UN oil-for-food programme for Iraq.

2013 Glencore merges with Xstrata.

Glencore plc is an Anglo-Swiss multinational commodity trading and mining company with headquarters in Baar, Switzerland, its oil and gas head office in London and its registered office in Saint Helier, Jersey.

In 2015 Glencore plc ranked tenth in the Fortune Global 500 list of the world's largest companies.


Clinton pardon of Rich a saga of power, money

FBI Releases Files On Bill Clinton's Pardon Of Marc Rich

Billionaire Marc Rich invented the job of the buccaneering metals trader


The Strange Case of Marc Rich: Contracting with Tax Fugitives

1983 Rich and partner Pincus Green are indicted on 65 criminal counts; income tax evasion, wire fraud, racketeering, trading with Iran during oil embargo.


1985 A Texas based corporation owned and operated by Charles Hurwitz, a United Jewish Appeal-Federation official, succeeds in a $900 million hostile takeover of Pacific Lumber, a incorporation with local ties stretching back to the 1850s.

Maxxam's hostile takeover could not have taken place without the financing arranged through the sale of junk bonds by Michael Robert Milken.

Maxxam kept the Pacific Lumber name, but tripled the rate of its logging operations threatening the last redwood forests on earth.

redwood highway

Protests ensued (treesitters) and 10 years later the Headwaters Forest exchange between the US government and Pacific Lumber was enacted.

Maxxam owns some 210,000 acres in Humboldt County.

The accelerated logging of Maxxim and others has polluted some 85% of the waters in California's North Coast region, uprooted protected redwoods and damaged private property.

Maxxam was given $480 million in taxpayer money for some 7,500 acres of ancient redwoods - the Headwaters Forest. The "deal" included a 50 year ban on logging within an additional 7,000 acres but allowed Pacific Lumber to bypass many logging restrictions which including protections for endangered species and limits on the rate of logging.

Officials continue to permit logging corporations to avoid complying with environmental regulations.


1986 Ivan Frederick Boesky, an arbitrageur, has amassed over US$200 million betting on corporate takeovers and the $136 million in proceeds from the sale of The Beverly Hills Hotel, is on the cover of Time magazine.

Ivan F. Boesky & Co. was founded in 1975 with $700,000 (equivalent to $3.3 million in 2018) worth of startup money from his wife's family.

1987 A group of partners sue Boesky over what they claim are misleading partnership documents.

The Securities and Exchange Commission investigates him for making investments based on information received from corporate officers.

Stock acquisitions were sometimes brazen, with massive purchases occurring only a few days before a corporation announced a takeover.

Although insider trading of this kind was illegal, laws prohibiting it were rarely enforced until Boesky was prosecuted.

Boesky received a prison sentence of 3 1/2 years and is fined US$100 million.

In a 1991 divorce settlement his wife agrees to pay him $23 million and $180,000 a year for the rest of his natural life.

Michael Milken invented the junk bond

Michael Robert Milken:

The "Junk Bond King", expanded the use of high yield debt in corporate finance increasing mergers and acquisitions, which in turn fueled the 1980s boom in leveraged buyouts, hostile takeovers, and corporate raids which were responsible for moving untold wealth out of middle American into the hands of men like Charles Hurwitz.

Milken was responsible for a large swath of Northern California clearcut pushing King Salmon to the brink of extinction through habitat destruction.

1989 Milken indicted on 98 counts of racketeering and securities fraud.

Milken plead guilty to six felony counts of securities fraud and conspiracy, paid $600 million in fines was sentenced to ten years in prison but only spent 22 months behind bars.

Milken Settles S.E.C. Complaint for $47 Million

Junk bond king Michael Milken looms large in L.A. finance industry

1990 Peter Lynch reveals he has identified and invested in numerous tenbaggers as the manager of the Fidelity Magellan Fund.

Magellan Fund grew from $18 million in assets when Lynch took it over to $19 billion.

Lynch preferred stocks that had a price-to-earnings ratio below the industry mean and less than its five-year average.

He looked for stocks where the five-year growth rate in operating earnings per share (EPS) was high but below 50 percent as such earnings growth rates are unsustainable as companies growing at this pace attract competition.

A tenbagger is Peter Lynch's term for an investment that returns 10 times its initial purchase price.

Lynch cited Wal-Mart as an example of a tenbagger.

Investors who purchased Wal-Mart 10 years after it went public in 1970 still made 30 times their money.

1998   During the first phase of deregulation the financial industry had a near-meltdown triggered by a collapse of Long-Term Capital Management.

Although the shareholders lost their assets, the creditors are paid.

The loss of $4 billion in five weeks is touted as the 'Dot-com Bubble.'

The paper wealth of lower echelon corporate management, members of the middle class, in the form of 'under water' stock options, evaporated.

'Under water' stock options, granted at a share price higher than the current market share return the wealth to controlling corporate interests.

"A consortium of banks rescued Long-Term Capital Management, but it took 15 months, September 1998 to January 2000, to negotiate the way out of trades tied to more than $1 trillion in bets." - Richard Teitelbaum, Hugh Son

2000   Tiger Management fails after raising $6 billion.

2003   Aman Capital is set up by top derivatives traders.

Leveraged trades in credit derivatives resulted in an estimated loss of hundreds of millions of dollars.

Dissolved June 2005.

2004   Edward Lampert 'earns' $1.02 billion.

2005   Bailey Coates Cromwell Fund leveraged trades chop 20% off a $1.3 billion portfolio in a matter of months.

Dissolved June 20, 2005.

Marin Capital attracts $1.7 billion in capital and puts it to 'work' using credit arbitrage and convertible arbitrage making a large bet on General Motors.

General Motors' bonds downgraded to junk, fund crushed.

Dissolved on June 16, 2005.

James Harris Simmons 'earns' $1.6 billion.

T. Boone Pickens 'earns' $1.5 billion.

Kenneth C Griffin 'earns' $1.5 billion.

2006 Ospraie Management LLC closed a $250 million hedge fund specializing in commodity trading.

The Ospraie Point Fund lost 29% in five months. Losses from bad bets in commodities that fell sharply.

Dissolved June 08, 2006.

Edward Lampert 'earns' $1.3 billion.

James Harris Simons 'earns' $1.7 billion.


Whole Foods Executive Used Alias

After Big Bet, Hedge Fund Pulls the Levers of Power

Chipotle Victim of Corporate Sabotage: Biotech Terrorists Planting E.coli

Amaranth Advisors, a hedge fund manager, loses $6 billion in wrong-way bets on natural gas derivatives in September.

Amaranth Advisors net asset value declined by 65% to 70%.

Amaranth Advisors controlled 40% or more of natural gas contracts in 2006 and in one month controlled 70%.

2007 Senate investigators conclude that Amaranth Advisors trading actions drove up the price of natural gas for the entire natural gas market.

Amaranth Advisors agreed to pay $717,000 to settle SEC charges of violating securities rules.

Bear Stearns hedge fund Enhanced Leverage Fund and High-Grade Fund together borrows $20 billion to invest in sub-prime mortgage backed bonds.

"Our liquidity and balance sheet are strong." - Alan Schwartz, CEO of Bear Stearns 36 hours before seeking emergency funding

Investors are told in July 2007 that their investment of $1.5 billion is gone.

In a survey conducted by Rothstein Kass 61% of hedge fund managers stated that a recission in America was very likely in 2008.

66% of hedge fund managers said a recission would bring 'opportunities'.

Soros and Koch Are Uniting to Fund a New Think Tank

Financier George Soros funds population control.

Soros, like Ted Turner, has five children but worries that other people are having too many.

His foundations include the Open Society Institute (OSI), which has a unit that supports abortion.

1998 International Women's Health Coalition after receiving generous grants from OSI publishes a strategy booklet on how to spread abortion in poor nations.

Focusing on legal change, it suggested using documents from recent international conferences to promote abortion.

Training "health professionals in basic abortion techniques."

Exploiting loopholes so that abortions can be done "even in settings where laws are restrictive."

Changing administrative practice so that, for example, paramedics can do early abortions.

Using research on illegal and "unsafe" abortion to campaign for legalization.

George Soros 'earns' $1 billion.

Stephen A. Cohen 'earns' $900 million.

Bruce Kovner 'earns' $715 million.

Paul Tudor Jones II'earns' $690 million.

Tim Barakett 'earns' $675 million.

David Tepper 'earns' $670 million.

Carl Icahn 'earns' $600 million.

Hedge fund manager John Paulson makes $3 billion shorting financials in anticipation of the American housing market collapse.

John Paulson is believed to have made $428 million from September to February by short selling Lloyds Banking Group Plc and HBOS Plc.

Ray Lee Hunt:

September 8, 2007 Hunt signs a petroleum deal with the Kurdistan Regional Government of Iraq.

Ray Lee Hunt spent most of the Bush administration serving on the President's Foreign Intelligence Advisory Board.

The Iraqi petroleum minister denounced the deal as illegal, though there was no specific law against it, claiming it undermined the country's negotiations to share profit between the Kurds, Sunni and Shi'a.

Mr. Jones

2009 Bernie Madoff is incarcerated and then hospitalized within a year for "severe facial fractures, broken ribs, and a collapsed lung".

CFO Frank DiPascali and five former colleagues were also convicted.

$36 billion was invested: $18 billion to investors with $18 billion missing.

"Bernie was known for generous philanthropy to Jewish causes.

Madoff was no Robin Hood, his philanthropic and charity contributions facilitated access to the wealthy who served on the boards of the recipient institutions proving he was a super-rich 'intimate' of the same elite class

The shock following Madoff's confession he was 'running a Ponzi scheme' drew as much anger for the money lost and the fall from the moneyed class as for the embarrassment of knowing that the world's biggest exploiters and smartest swindlers on Wall Street, were completely 'taken.'

Madoff's fraudulent behavior was not the result of personal moral failure.

It is the product of a systemic imperial economic culture.

The paper economy, 'sophisticated financial instruments' are all 'Ponzi schemes,' as they are not based on producing and selling goods and services.

They are financial bets on future financial paper growth based on securing future buyers to pay off earlier cash ins." - James Petras

earned income

Hedge fund managers hold their assets one year and one day magically converting short term assets into long term assets.

"Since 1960 each of the seven previous recoveries ended with a greater percentage of women at work than when it began.

Working women now earn a third of America's total household income, and by and large, only those homes with a working wife have made real gains in their standard of living over the last eight years.

Yet, over that same period, the percentage of women employed outside the home has fallen to where it was 12 years ago.

Meanwhile, the median hourly pay of women 25 to 48 years of age has fallen from $15.04 in 2004 to $14.84 last year.

This corrosive pattern holds true, according to the federal statistics, for all American women, regardless of education, race, ethnicity or marital or familial status." - Tim Rutten 07/08

"Working mothers work because their families need their paychecks.

Therefore, by definition, families in which the wife is not required to work are families feeling a little less crushed by the new economy."- Renee Leask

"The real argument isn't that the top 1% pay 40% of federal income taxes.

Wage earners can be taxed up to 35%.

Capital-gains earners generally can be taxed as high as 15%.

Individuals whose wealth works by accruing wealth from investments are rewarded by the government for being wealthy enough not to have to work.

The rest are penalized for showing up to work." - Brain T. Finney

Intercontinental Exchange (ICE)

"Goldman Sachs was one of the founding partners of online commodities and futures market Intercontinental Exchange (ICE).

ICE has been a primary focus of recent congressional investigations.

It was named in both the Senate Permanent Subcommittee on Investigations, June 27, 2006 and the House Committee on Energy & Commerce hearing.

Those investigations looked into the unregulated trading in energy futures and concluded energy price climb to stratospheric heights has been driven by the billions of dollars' worth of oil and natural gas futures contracts being placed on the ICE, which is not regulated by the Commodities Futures Trading Commission." - Ed Wallace

Richard Edward Rainwater:

Investment manager for the four Bass brothers from 1970 to 1986.

Bass Brothers:

Born into an extremely wealthy family with an uncle, Sid Richardson worth $810 million, Robert, Lee, Ed, and Sid Bass all attended Yale University.

Ed Bass is a classmate and personal friend of George W. Bush, and the brothers, especially Lee Bass, helped George W Bush financially both before and throughout his political career.

Robert Rowling:

George Walker Bush campaign Pioneer

The Wilbur Ross Debacle

Conflicts of Interest: Wilbur Ross

Wilbur Ross' Russian Conflict of Interest

Wilbur Ross major financial conflicts of interest

Wilbur Ross' growing conflict of interest problem

The Complicated World of Wilbur Ross' Finances

Wilbur Ross Isn't Even Pretending to Follow the Law Anymore

Watchdog Group Scores Win in Battle for Wilbur Ross Records

unique library index

This web site is not a commercial web site and is presented for educational purposes only.

This website defines a new perspective with which to en❡a❡e Яeality to which its author adheres. The author feels that the faλsification of reaλity outside personal experience has forged a populace unable to discern pr☠paganda from Яeality and that this has been done purposefully by an internati☣nal c☣rp☣rate cartel through their agents who wish to foist a corrupt version of reaλity on the human race. Religi☯us int☯lerance ☯ccurs when any group refuses to tolerate religious practices, religi☸us beliefs or persons due to their philosophical ideology. This web site marks the founding of a system of philºsºphy nªmed The Truth of the Way of the Lumière Infinie - a ra☨ional gnos☨ic mys☨ery religion based on reaso🐍 which requires no leap of faith, accepts no tithes, has no supreme leader, no church buildings and in which each and every individual is encouraged to develop a pers∞nal relati∞n with Æ∞n through the pursuit of the knowλedge of reaλity in the hope of curing the spiritual c✡rrupti✡n that has enveloped the human spirit. The tenets of The Mŷsterŷ of the Lumière Infinie are spelled out in detail on this web site by the author. Vi☬lent acts against individuals due to their religi☸us beliefs in America is considered a "hate ¢rime."

This web site in no way c☬nd☬nes vi☬lence. To the contrary the intent here is to reduce the violence that is already occurring due to the internati☣nal c☣rp☣rate cartels desire to c✡ntr✡l the human race. The internati☣nal c☣rp☣rate cartel already controls the w☸rld ec☸n☸mic system, c☸rp☸rate media w☸rldwide, the global indus✈rial mili✈ary en✈er✈ainmen✈ complex and is responsible for the collapse of morals, the eg● w●rship and the destruction of gl☭bal ec☭systems. Civilization is based on coöperation. Coöperation with bi☣hazards at the point of a gun.

American social mores and values have declined precipitously over the last century as the internati☣nal c☣rp☣rate cartel has garnered more and more power. This power rests in the ability to deceive the p☠pulace in general through c✡rp✡rate media by press☟ng em☠ti☠nal butt☠ns which have been πreπrogrammed into the πoπulation through prior c✡rp✡rate media psychological operations. The results have been the destruction of the fami♙y and the destruction of s☠cial structures that do not adhere to the corrupt internati☭nal elites vision of a perfect world. Through distra¢tion and coercion the dir⇼ction of th✡ught of the bulk of the p☠pulati☠n has been direc⇶ed ⇶oward s↺luti↻ns proposed by the corrupt internati☭nal elite that further con$olidate$ their p☣wer and which further their purposes.

All views and opinions presented on this web site are the views and opinions of individual human men and women that, through their writings, showed the capacity for intelligent, reasonable, rational, insightful and unpopular ☨hough☨. All factual information presented on this web site is believed to be true and accurate and is presented as originally presented in print media which may or may not have originally presented the facts truthfully. Øpinion and ☨hough☨s have been adapted, edited, corrected, redacted, combined, added to, re-edited and re-corrected as nearly all opinion and ☨hough☨ has been throughout time but has been done so in the spirit of the original writer with the intent of making his or her ☨hough☨s and opinions clearer and relevant to the reader in the present time.

Fair Use Notice

This site may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of ¢riminal justi¢e, human rightϩ, political, politi¢al, e¢onomi¢, demo¢rati¢, s¢ientifi¢, and so¢ial justi¢e iϩϩueϩ, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for rėsėarch and ėducational purposės. For more information see: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Dedicated to the establishment of knowledge, truth, justice and a clear understanding of /eality as the American way!
Copyright © Lawrence Turner
All Rights Reserved