Several recent reports have pointed out that, in the years before its global train wreck, AIG ran itself less like an insurance company and more like a hedge fund. On that, read this quote about modern-day hedge funds from the May 2008 Elliott Wave Theorist by EWI’s founder and president Bob Prechter.
Hedge funds are "supposed to make money in bull and bear market." That's a very important point, because over the past 5 years, many funds have NOT been acting as hedge funds. Instead, just like "day-traders" in the late 1990s, they've not been trading, they've just been buying. Here's how Bob Prechter, EWI's founder and CEO, put it in his May 2008 Elliott Wave Theorist (excerpt)...
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