Gamblers are the big winners in the global casino

Hedge fund managers sometimes earned billions from the financial crisis last year

Although most people are losers in the financial crisis caused by speculators, there are also winners among those who are responsible for the crisis and losses. And the profits are exorbitant, proving once again how deep the divide within corporations has already become.

"Forget the credit crisis", writes Alpha magazine, which published the income of hedge fund managers last year. "For many hedge fund managers, profits are up 50 percent in 2007. The CEOs and CIOs of individual companies have earned an average of 3.8 and. 3.6 million earned."

Despite the crisis, hedge funds are booming. At the beginning of the year, according to HedgeFund Intelligence, 2.3 trillion US dollars were invested in them. The money flows circulate around the globe, directed by the managers who make a killing even when they bet on losses.

In the global casino, the largest incomes are generated by betting. This proves that it is not labor and production, but gambling that is favored most and most quickly in our economic order. If so financial manager John Paulson with bets in one year 3.7 billion dollars or 2.3 billion euro rakes in, is hardly still conceivable and suggests the impression that here something is no longer correct and from each relation fell out. Paulson just earned with bets on the bad real estate loans.

The famously wealthy speculator George Soros, while one of the critics of the financial system for years, continued to earn $2.9 billion on the side in 2007. In third place, with 2.8 billion, is James Simons.

How well the speculators’ businesses are doing can be seen from the fact that the average income of the top 25 has risen by over $300 million in the last year, to $892 million. To belong to the elite of successful gamblers, one had to earn 360 million dollars, one and a half times more than in 2006 and 18 times more than in 2002. This also shows that the spiral is turning faster and faster.

While some people lose everything and suffer more and more from inflation, the Scrooge McDucks of the world can fill their money stores. They are not personally responsible for what they do when they bet billions in the global casino. Of course, you can lose and gamble away your depositors’ money as well as your own. But the damage, which the gamblers cause more or less unregulated with their hormone driven bets, has to be paid by the others. If hedge funds can sometimes generate triple-digit returns, this also undermines the economic fabric, since gambling in this way simply promises more in the short term than if you invested.

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