Current Banking Crisis: Positive for Future IB?

<p>I'm SO glad I decided on law school. I'll ride out most of the recession in law school, and probably enter the job market around the time law firms start busting down my door with job offers in hand and giving out $20k/year COLA's.</p>

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Do you know what a hedge fund is? They're not supposed to be "manipulating" the market.

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<p>Ummm... according to the efficient market hypothesis, arbitragers will take advantage of opportunities until they disappear. Thus, by definition, they are manipulating the market.</p>

<p>"manipulating" the market by forcing a price movement, is something that no one is suppose to be doing, not just hedge funds.</p>

<p>The buying and selling to take advantage of arbitrage opportunities is not "manipulation". Just because everyone is making the same "bet", and thus moving the price of something, is not, in and of itself, "market manipulation".</p>

<p>Taking a long or short position in a stock is not necessarily market manipulation. Talking down a stock so your short position makes a profit is "market manipulation". Large buy/sell orders right before an option expiration in order to profit on an position in options that cash settles is also "market manipulation".</p>

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.the only class of hedge funds that have done well through this crisis are Global Macro...

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<p>The WSJ last year reported on a hedge fund that shorted the mortgage market. Lost millions for 2 years, then made $4 billion in a matter of months.</p>

<p>AHHAHA, no one on here except for OperaDad knows how HFs work. </p>

<p>wutang, why in the world should I change my name? Aren't you supposed to be running a hedge fund or something, dude? Hold up, I think I have some nickels and dimes in my jeans for you...</p>

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AHHAHA, no one on here except for OperaDad knows how HFs work.

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<p>Considering that I work in the industry, I certainly know how HFs work; not that I need the approval of a college student who hasn't worked a day in his life.</p>

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Do you know what a hedge fund is? They're not supposed to be "manipulating" the market.

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<p>So this was a typo? HFs are in deep because they "manipulate" (yes, there's that word again) pricing and are responsible for creating speculation in the market. This volatility, in turn, leads to opportunity for arbitrage which HFs capitalize on. </p>

<p>If you don't need approval from college students, why in the world do you have 2,500+ posts on a college forum? I mean, unemployment must suck for you but I hear McDonald's is hiring.</p>

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So this was a typo? HFs are in deep because they "manipulate" (yes, there's that word again) pricing and are responsible for creating speculation in the market. This volatility, in turn, leads to opportunity for arbitrage which HFs capitalize on.

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<p>While that may have occurred in some cases, that is not the fundamental purpose or approach of hedge funds, which is what was being discussed; not to mention, that depending on what you mean by "in deep" that is not why hedge funds are "in deep" at all. </p>

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If you don't need approval from college students, why in the world do you have 2,500+ posts on a college forum?

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<p>I post on here to try to help college students or those applying to school.</p>

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I mean, unemployment must suck for you but I hear McDonald's is hiring.

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<p>A typical response from a Wharton tool. One, I am not unemployed and two, if you ever make it to Wall St, you will quickly realize that magnanamity and humilty are two of the most important traits to possess. Celebrating the demise of others is both ridiculous and is personally going to hurt you in the long run.</p>

<p>Um, Omaplata-
you still haven't come clean-you don't know what a hedge fund is. Did you look up what an activist hedge fund is?
You do realize there is a quote here proving that you don't know what a hedge fund is:
"They "offer zero value" because they're not PE shops looking to capitalize on portfolio growth and improvement."
^that right there proves you have absolutely no idea what your talking about. </p>

<p>You're still a kid, it's OK. Just tone down the arrogance. </p>

<p>Also, I was lloking at starting an incubator fund; the capital required is quite small. I simply wanted to be able to generate an audited track record. Again, you're still a little kid, it's OK.</p>

<p>wutang-what happened to becoming a financial advisor in some tiny city in the middle of nowhere? I thought that was what you were going to do (as you mentioned in some other thread-can't be bothered to look it up).</p>

<p>Trust me, people aren't stupid-if they offered zero value, they wouldn't be getting paid. Now whether they're getting paid something more than their worth is questionable.</p>

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A typical response from a Wharton tool. One, I am not unemployed and two, if you ever make it to Wall St, you will quickly realize that magnanamity and humilty are two of the most important traits to possess. Celebrating the demise of others is both ridiculous and is personally going to hurt you in the long run.

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<p>I'm sorry your fifth tier education didn't teach you how to read and analyze arguments properly. Where, in any of my posts, did I "celebrate the demise of others" or anything remotely close to that? I said "unemployment must suck" -- that's certainly a valid, non-celebratory statement, isn't it? "McDonald's is hiring" -- again, a fact. If anything, I'm trying to HELP those in distress. Speaking of which, gellino, there's a soup kitchen down here in Philly...</p>

<p>wutangfinancial, I tried reading your posts but your syntactical errors and spelling mistake made it difficult to do so. Maybe "lloking" is a word they use in crappy fifth tier colleges like the one you and gellino attended.</p>

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I mean, unemployment must suck for you but I hear McDonald's is hiring.

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<p>If you don't think that is smugly celebrating the demise of others (while promoting your supposed superiority), then you're in for a world of hurt in trying to get along with anyone in the business world.</p>

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I'm sorry your fifth tier education didn't teach you how to read and analyze arguments properly.

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<p>I don't know where you come off thinking my education is fifth tier; nevermind that your reading comprehension skills showed that you didn't even understand what the poster meant by 'offer value'. I certainly would rather have gone to the schools that I attended than Wharton for UG, which for the most part is for those that aspire to be corporate drones by age 17. However, since you're already indoctrinated in that mindset, don't realize that others look down on you for it. I had some friends at Wharton who were embarrassed to say they went there and would tell people they just went to Penn instead. This would probably never occur to you because you are enthralled with how impressive you feel you are regarded.</p>

<p>Again gellino, please show me where I "celebrated the demise of others." My position stands:</p>

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<p>I don't get the point of our last paragraph. Sure Wharton is a great school, but I myself admitted that 90% of the students there are tools. See below:</p>

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<p><a href="http://talk.collegeconfidential.com/university-pennsylvania/641476-penn-too-serious-not-fun.html#post1061716669%5B/url%5D"&gt;http://talk.collegeconfidential.com/university-pennsylvania/641476-penn-too-serious-not-fun.html#post1061716669&lt;/a&gt;&lt;/p>

<p>I'm aware enough to not take myself too seriously; I suggest you do the same, old man.</p>

<p>^Well, you shouldn't attack people who know more than you. Everything you stated is wrong. Quit trying to create distractions. </p>

<p>If you responded this way in an interview, you'd be completely screwed. Also, pulling the "I go to Wharton" card only devalues your school, especially when you're caught in over your head.</p>

<p>Well, it's a good thing I don't respond this way in interviews then, huh? Good luck at your fifth tier education dude; I hear the women in your community college are hot. </p>

<p>Oh, and HAHAHAHHA @ you for not even getting an interview with a crap of an excuse for a bank like DB. That's embarrassing -- I guess you better start "lloking" elsewhere.</p>

<p>DB</a> Corporate Finance Internship Interview(1st round) | WallStreetOasis.com</p>

<p>^I didn't post that. Check IP addresses. A ton of people have my SN since it's a popular skit. </p>

<p>Quit digressing...you were wrong, now fess up.</p>

<p>I really hope your personality isn't as abrasive in real life as it is on the internet. </p>

<p>For the record, I will happily concede that Wharton is superior to my undergrad. Still has nothing to do with the issue at hand. If you spread false information, you harm others on this site. It's just surprising that someone who got into Wharton would be that foolish.</p>

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I'm aware enough to not take myself too seriously; I suggest you do the same, old man.

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<p>I just don't like when people are caustic know-it-alls, especially when they don't even really know what they are talking about, but realize that it unfortunately comes with the territory when dealing with self-important Wharton UGs. </p>

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I mean, unemployment must suck for you but I hear McDonald's is hiring.

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<p>However, this is the kind of statement that bothers me more. I'm not sure which is worse: making this kind of remark in an environment where unemployment is at its highest level in over 25 years and climbing higher or trying to defend it after the fact that it is justified and sluffing it off as others are over-reacting to such needless belligerence.</p>

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I just don't like when people are caustic know-it-alls

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<p>Reading comprehension isn't really your strong point, is it? Caustic, yes. But I never claimed to be a know-it-all (in fact, where did I say I knew everything? Please show me. Thanks.). Trust me, there are a lot of things in the world I don't understand -- one being how an old geezer can lack rather rudimentary analytical and linguistic skills. Your inability to decipher simple English vocabulary speaks volumes about your low intelligence level. In turn, you try to overcompensate for your stupidity by "giving advice" on an anonymous college forum. Nail on the head, huh? I read you like a book, which is something I guess you can't say. (And, no, that's not me being a "know-it-all" or "caustic" -- that's simply fact.)</p>

<p>You know, you keep quoting that same sentence over and over again, but fail to adequately show how it is demeaning. What, you could tell from the "tone" of my post? That would require a relatively sophisticated level of rhetorical ability (something you're lacking).</p>

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^I didn't post that. Check IP addresses. A ton of people have my SN since it's a popular skit.

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<p>I'm bored on a Saturday afternoon (and slightly inebriated) and I went through your post history on CC and on WSO -- you're the same person. You can deny it all you want, but it just goes to show you how much of a pathetic loser you are (rejected from DB? Really?). </p>

<p>I really have nothing else to say to you. My definition of "hedge fund" is correct -- see OperaDad's post if you need further clarification. Good luck to you, I know you'll need it. If you need further life lessons on how to mess everything up gravely, follow in gellino's footsteps.</p>

<p>Not all Whartonites are like omaplata. As a matter of fact, we don't even know if he actually attends Wharton. Many Wharton grads identify their school as Penn not because they are embarrassed of Wharton but because they don't want to appear as "snobs" like many posters here.</p>

<p>Here is a headline from Standard and Poor's:</p>

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Market Intellect: Will A Tightening IPO Market Have Companies Pursuing Mergers And Other Alternatives?</p>

<p>With the U.S. IPO market coming off one of its worst years in history, with fewer than 50 successful pricings--down from more than 200 in 2007--and the last notable IPO pricing in the U.S. occurring more than two months ago, companies that would've completed an IPO may soon be pursuing alternatives. One possibility among many could be some corporate marriages of necessity and, therefore, an increased likelihood for mergers and acquisitions.

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<p>So, IB graduates: Go for the M&A jobs.</p>