| The merger mania is continuing, with many firms | | | | to safeguard against any mega-collapse like Enron |
| in the United States and Europe being bought up | | | | occurring. The prime funders of the Committee |
| by hedge funds. An enormous amount of capital | | | | are none other than financial hedge fund players |
| has flocked to hedge funds in order to exploit the | | | | Wilbur L. Ross, the Starr Foundation, and Kenneth |
| low or non-existent tax rates in offshore financial | | | | Griffin of the Citadel Investment Group. This |
| centers such as the Cayman Islands and the | | | | proposal has the backing of U.S. Treasury |
| Bahamas. The US and other major stock markets | | | | Secretary Henry Paulson, but is seen as ridiculous |
| are not going up at a level to satisfy the financial | | | | by state prosecutors in general, including former |
| lust of the ultra-rich, so the idea is to move into | | | | N.Y.Attorney General and now N.Y. Governor-elect |
| hedge funds since they are what are called | | | | Elliot Spitzer. |
| “market neutral”. It is a manifestation of | | | | Many hedge funds strategies attempt to hedge |
| the hyperinflation tendencies that all this money is | | | | against losses in the markets they trade by selling |
| around to run M & As. Lear Corporation | | | | other stocks in a similar category short. The |
| announced on Dec 1st its deal to sell its interiors | | | | more prevalent moneymaking strategy lately is to |
| business to Wilbur L. Ross's International | | | | buy up manufacturing companies such as in the |
| Automotive Group North America. The Bank of | | | | auto industry, when they are bankrupt. Then |
| New York is buying the Mellon Financial for $16.5 | | | | hedge fund management adopts strategies for |
| billion, to create the world's largest security | | | | quickly cashing in on the companies, or moving |
| servicing firm | | | | them overseas, along with their machine tools to |
| The value of the dollar has dropped by 11-percent | | | | Third World, low wage countries. Another |
| so far this year, and of that 3.6-percent in | | | | strategy is to buy up various sorts of companies, |
| November. It plunged to a 14-year low against | | | | whether or not they are bankrupt, and issue |
| the pound sterling pushing the dollar/British pound | | | | dividends to stockholders, while piling companies |
| rate close to the $2 level, where it hasn't been | | | | with large amounts of debt. Since the dollar is |
| since 1992. | | | | going lower, the tendency is to grab companies |
| The hedge funds are demanding less regulation. | | | | through mergers and acquisitions, as something |
| There are some proposals to get rid of the | | | | tangible to either hang on to or play with. |
| Sarbanes-Oxley regulations, which are supposed | | | | |