The definition of "unruly investors" is banks, or investors, which are investors whom actually want their money and profits as promised. A hedge fund is a bet that covers another bet - hedging an investment is the same as hedging a bet. It merely represents a buy and a sell with a set amount of loss or gain for each that hedges the original bet.
The original hedge was on commodity and commodity futures market. A buyer of pork options would place a future order for his meat at a set price. Then he would also make an equal order to sell that same meat at a somewhat higher or lower price thereby limiting his loss, or profit, to what is in between. With rising markets there is no problem paying off the lower contract by selling the buy contract, which has risen in value. But with lowering prices, when all prices go below all contracts the hedge is screwed. Even more complications arise when speculators, those who do not even want the product they trade, get in the game.
AIG, which is government owned, backed all bets - insured the profits on buys and sells. For years gaining profits and squandering them since they never had to pay out. Then came the day of reckoning when the housing market crashed and AIG had to pay to banks and investors who saw it coming.
AIG, or the US government, is now going to pay the foreign bankers who used AIG to make their bets. Gambling is illegal for you or me but for bankers it is business. AIG did not hedge its bets and must have had a grand laugh as they took the bets that the housing market would crash. When the day came they had no money to pay what they promised the once private group of plunderers handed off the debt to the taxpayers to be responsible for, paid themselves a few million each, and went off to enjoy life in their mansions. They actually had enough pull in government after years of multi-million dollar donations to get their debts taken on by them.
The problem with money is it is not. Today there are only fiat currencies tied to nothing tangible. We have had a faux currency foisted on us by our government backed by nothing but air. With the advent of private banking taking over creation of currency Americans not only gave up their Constitutional guarantee of real currency but also became slaves to the private designs of International bankers and the powers that created them.
When China tries to get real money, gold, at the International Bank of Reconciliation for the 700 trillion dollars of US debt they hold the only thing left to redeem them for is the people and land in the USA.
Remember; AIG is 80 percent owned by the US government. Anything they do is done as the government. Anyone who owns 80 percent of a company is certainly responsible for every action and since September the government runs AIG. The government pays every bonus, 170 million of them so far, and every debt. The people that ran AIG into the ground have gotten millions in pay and bonus and it continues even though the US government has taken over. It is very disturbing to see the owners screaming about it yet continuing to create the environment they are screaming about. Why do they pay bonuses if they want them back?
If the company had been left to fail for its greed you and I would not be responsible for the plundering. Now that bankers forced the government to buy their debts (not profits) the government still wants to blame the banks. It is government’s fault now and our burden - that is if you accept these jokers as authority over you. Time for regime change.