30 October 2008

Ouch!

The best story in recent weeks comes out of Germany where Porsche - many of whose fine products can be seen and heard growling round the streets of Munich - stung, stuffed, screwed and comprehensively wiped the floor with the parasites of the hedge fund world.

The BBC reported that the hedge funds speculators, who were betting on a fall in the value of Volkswagen shares, lost €22 billion. According to Spiegel, the hedge funds have now gone whining to the German financial regulator, complaining that they had not been told what Porsche was doing. This is like a gambler complaining that he had not been told which horse was going to win the race.

Many of the reports reveal that some of these hedge fund traders were in tears as they desperately tried to cover their losses. How I wish I could have been there to laugh. The anger and contempt of the public for these people is wonderfully illustrated in the 240 posts (and growing) of readers comments attached to Robert Peston's blog posting on the story.