A Wall Street Journal reporter wrote a piece on hedge funds looking to
find bargains in beaten down bank stocks. At one point he wrote this
paragraph about the hedge fund investors:
“Since
it is harder for investors to borrow money at reasonable rates, they
won’t be eager to be buyers unless prices are marked down further. That
all suggests troubles in the financial market will get worse before
they get better. And most of the money being raised seems aimed at
investing in distressed companies, not securities, suggesting more
write-downs of mortgage-related assets if housing doesn’t perk up.”
What
the h— does that mean and how does he get from Point A to Point B? If
you can explain that, you’re smarter than I am. Does this validate the
snide comments we hear about financial reporters or am I missing
something here?
