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Komfie Manalo, Opalesque Asia: Chris Gosselin, CEO of Australian Fund Monitors, said that over the past few weeks, certain sections of the Australian media have been getting excited about the prospect of those 'nasty' hedge funds with short positions losing money thanks to a "short squeeze" rally in the price of the banks and Fortescue Metals Group (FMG).
He added that some sectors think that all short sellers should "be put up against a wall and shot," while others seem to believe that the only reason share prices fall is because of short selling by hedge funds.
As it was widely reported in the Australian press, a hedge-fund manager and an economist posed as a gay couple on a combined income of $125,000 and toured Sydney's western suburbs viewing housing developments and meeting mortgage brokers for research to determine if there's a housing bubble. Their conclusion was that it's worse than they thought. Their experiences led them to believe that the Australian housing market was a 'Ponzi scheme", "insane" and "crazy." House prices, in their view, were likely to fall around 50% and that banks, mortgage insurers and other lenders would suffer massively as a result. However, the market seemingly was not impressed as a rally of b...................... To view our full article Click here
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