Monday, May 30, 2016

Letter: Hedge fund billionaires 'endanger' world finances - NonDoc

Letter: Hedge fund billionaires 'endanger' world finances - NonDoc:

Letter: Hedge fund billionaires ‘endanger’ world finances

Hedge funds
(Morguefile.com)
(Editor’s Note: NonDoc believes in creating a responsible forum for the rational and respectful discussion of topics and ideas. As such, we run Letters to the Editors of 300 words and reserve the right to edit lightly for style and grammar. To submit a letter for publication, please write to letters@nondoc.com. We simply require your name, the town in which you live and your contact information.)
To the editors,
Hedge funds are one of many types of speculative trading that endanger the worldwide financial system.
A hedge fund is a private-investment vehicle, operating as a limited partnership, that invests in debt, complex derivatives, stocks, bonds, options and commodities.
Hedge fund managers often enjoy astonishing payouts, some in excess of a billion dollars in a year.
But just how much is a billion dollars, and does this investment practice have an undesirable effect on our society?
One billion expressed numerically is 1,000,000,000. A billion is one thousand times larger than a million.
We can factor the product of one billion into two interesting numbers that, when multiplied together, make one billion.
Fifty-thousand times 20,000 equals 1 billion (or 50,000 X 20,000 = 1,000,000,000).
If we put a dollar sign on the 50,000, it equals about the average annual salary in the U.S. We can now see that 20,000 workers making $50,000 per year make a total of $1 billion, an amount similar to the yearly take of some hedge fund managers.
In 2015, some actual hedge fund managers made the amounts shown in the table below. As a group in 2015, the top-25 hedge fund managers made a total of $12.94 billion!

2015 hedge fund managers’ earnings

RANKNAMEFIRM2015 EARNINGSEQUIVALENT NUMBER OF JOBS THAT CONTRIBUTE TO SOCIETY*
1Ken GriffinCitadel$1.7B34,000
1James SimonsRenaissance Technologies$1.7B34,000
3Raymond DalioBridgewater Associates$1.4B28,000
3David TepperAppaloosa Management$1.4B28,000
5Israel EnglanderMillennium Management$1.1523,000
——————Top 25 Hedge Fund Managers$12.94B258,800
(*”Jobs” defined as making $50,000 per year and adding value with a useful product or service. “Equivalent number of jobs” per year calculated by dividing 2015 hedge fund earnings above by $50,000; source)
The table illustrates how these kinds of financial transactions can take a heavy toll on overall Letter: Hedge fund billionaires 'endanger' world finances - NonDoc:


Image result for big education ape  hedge funds

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