The Phaserl


If The Economy Is Fine, Why Are So Many Hedge Funds, Energy Companies And Large Retailers Imploding?

by Michael Snyder, The Economic Collapse Blog:

If the U.S. economy really is in “great shape”, then why do all of the numbers keep telling us that we are in a recession?  The manufacturing numbers say that we are in a recession, the trade numbers say that we are in a recession, and as you will see below the retail numbers say that we are in a recession.  But just like in 2008, the Federal Reserve and our top politicians will continue to deny that a major economic downturn is happening for as long as they possibly can.  In this article, I want to look at more signs that a dramatic shift is happening in our economy right now.

First of all, let’s consider what is happening to hedge funds.  For many years, hedge funds had been doing extremely well, but now they are closing up shop at a pace that we haven’t seen since the last financial crisis. 

The following is an excerpt from a Business Insider article entitled “Hedge funds keep on imploding” that was posted on Wednesday…

BlackRock is winding down its Global Ascent Fund, a global macro hedge fund that once contained $4.6 billion in assets, according to Bloomberg’s Sabrina Willmer.

“We believe that redeeming the Global Ascent Fund was the right thing to do for our clients, given the headwinds that macro funds have faced,” a BlackRock spokeswoman told Business Insider.

The winding down of the Ascent fund is the second high-profile hedge fund closing in 24 hours. The Wall Street Journal reported Tuesday that Achievement Asset Management, a Chicago-based hedge fund, was closing.

And those are just two examples.  Quite a few other prominent hedge funds have shut down recently, and many are wondering if this is just the beginning of a major “bloodbath” on Wall Street.

Another troubling sign is the implosion of so many energy companies.  Just like in 2008, a major crash in the price of oil is hitting the energy sector really hard.  Just check out these stock price declines…

-Cabot Oil & Gas down 37.27 percent over the past 12 months

-Southwestern Energy down 68.11 percent over the past 12 months

-Chesapeake Energy down 73.98 percent over the past 12 months

A number of smaller energy companies have already gone out of business, and several of the big players are teetering on the brink.  If the price of oil does not rebound significantly very soon, it is just a matter of time before the dominoes begin to fall.

We are also seeing tremendous turmoil in the retail industry.  The following comes from Investment Research Dynamics

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2 comments to If The Economy Is Fine, Why Are So Many Hedge Funds, Energy Companies And Large Retailers Imploding?

  • newfynew777

    a friend of mine..her family began Alpha Resources.. a coal energy Co..the largest coal energy Co. in the eastern half of the U.S. i believe if not the entire country,located in Bristol VA./TN. where i used to live and own a nightclub[Nightlife] and where I met her..she took it over[ I believe] but not positive as haven’t seen her in 15 2010 they[Alpha]acquired another huge coal energy Co. for 7 billion i believe..Alpha R. just filed BK and their stock is trading at 2 cents OTC[over the counter]down from $60 a share just 10 years ago..incredible..Obama said he was going to destroy the coal industry and by God the satanic demonic America hating Muslim SOB told the truth for once in his miserable ifing life..he has..he did,and will continue to BK them all but GE, so that GE is the only coal burning Co left,and will have a monopoly on for your electric bill to triple..quadruple and then go parabolic until you can’t afford to pay your electric bill any was time to stand up..10 years ago and we sat on our S’s..don’t look at your electric Al Qaeda and Big Bad Jihadi John chopping off phony dummy heads over look over here at the 2 chairs turned over in the Paris Cafe by the um “Suicide bombers” Actors” cough cough gag gag..

    “competition is a sin” – J.D. Rockefeller

  • Craig escaped from Detroit

    Electric bills will rise like crazy.

    They have been making electric bills SO HIGH, but the prices for SOLAR panels has been falling SO MUCH LOWER, that the big oil, coal & gas companies have helped to make solar power competitive to the point where solar power makes sense.

    And once you’ve got it up and running, you’ll never have to worry about electric bills going up anymore.

    Solar power was stupidly expensive when the panels were costing $5 per rated watt, but now you can get panels for about ONE BUCK per watt, and sometimes LOWER than that.

    You pay up front for the system, and recoup the investment over the next 10-15 years. (That is making an investment that PAYS you 7% to 10% / year. You cannot get that from any bank or stock, or 401, IRA, CD account, etc.)

    And the 7-10% “return” on your money is NOT TAXABLE because it is NOT income. They cannot tax you on eliminating your electric bill!!!

    Oh, don’t make the mistake of staying “connected to the grid” because they’ll hit you with all kinds of FEES that will eat up your savings. Go “OFF GRID” and shut off your meter, save those monthly “service fees”, etc.

    Yes, you’ll be “on your own”, be responsible for everything. America was built by people who were not afraid to take control of their own lives and didn’t want a “baby sitter” to spoon feed us. So we told the King of England to get the “F” out of our country.

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