My best guess is the QQQQ spike was a program trading move at the end and not the result of a big rush into the market.
The markets have been lackluster so far this week. The news hasn't been strong enough to move them higher or weak enough to move them lower. It feels like the markets are waiting for an extraneous event to move them.
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would you address the issue in this article in a future post - maybe explore the ramifications of bust / failure to the average everyday joe. and where do hedge funds get their money. thanks
http://news.yahoo.com/s/afp/20070410/bs_afp/imfg7economybusiness_070410185408
A recent orgy of debt-financed corporate buyouts risks destabilizing world financial markets, the International Monetary Fund warned Tuesday.
In its latest "Global Financial Stability Report," the IMF noted that so-called leveraged buyouts (LBOs) by private equity funds, which finance takeovers of companies through borrowed money, have seen a "massive increase."
Typically, such equity groups then remove the company from its public stock market listing and hive off its most profitable parts.
The surge in LBOs has been spurred by a "desire to reduce the scrutiny associated with being a public company" and a big influx of cash from investors into private funds, the IMF said.
"The LBO-acquired firms that have become heavily indebted may be more vulnerable to economic shocks," the report warned.
"A collapse in one or more high-profile deals could leave banks with exposure during a syndication stage and could trigger a wider reappraisal of risks across a broader range of credit products."
After emerging in a big way in the 1980s, LBOs reached a record level in 2006 with more than half the deals happening in the United States.
Their worldwide value stood at nearly 600 billion dollars, a 70-percent rise over 2005, according to the corporate consultancy Dealogic.
Calls for tougher regulation of hedge funds have mounted in recent months with Germany leading the charge for controls on the trillion-dollar industry.
Concern has grown because ostensibly conservative pension funds have joined the rush to invest in hedge funds despite their secretive trading practices.
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