Released on: October 20, 2007, 4:45 am

Press Release Author: Jack Payne

Industry: Law

Press Release Summary: The yo-yo effect, with disappearing billions of dollars on
the downside revealed, as Wall Street prepares for a launch of new Hedge Funds

Press Release Body: Magalia, California-October 21st 2007--With huge losses rung up
among the 9,000 existing hedge funds, nearly 50% of which are located offshore in
the Caribbean, and with a new deluge of these funds about to be unleashed, warning
bells are ringing out. One of the bell ringers, business book author, Jack Payne,
warns of the tremendous loss potential of these behemoths of investment.

In 2006, hedge fund, Amaranth Advisors, dropped a staggering $6 billion on wrongly
betting the direction of natural gas prices. (An unexpectedly severe nationwide
heat wave in August turned the tide against them.) And now, as Wall Street prepares
for a record release of new hedge funds, many worried observers believe holding them
more to account is relevant.

What is a \"hedge\" fund anyway? one might ask Many suspect these secretive entities
to be of con men-style activity To understand, the best model to compare
alongside is a mutual fund which most everybody recognizes.

The lightly regulated hedge funds can invest in literally anything at all..
Commodities, real estate, and currencies adorn their habitat. They are beyond stock
tips At one end of the investment spectrum they buy entire companies, at the other
they speculatively day trade the stock market. This freedom is indeed inviting to
con men. In contrast, mutual funds are tightly regulated, with their investments
generally limited to stocks, bonds, and closely-related offshoots.

In 1998 the crack up of the giant Long Term Capital Management Fund nearly collapsed
the entire U.S. economy. It rocked Wall Street to its very core. Thus, with 9,000
operating hedge funds, soliciting ever more investment dollars, Wall Street
observers feel it only fitting and proper--the time being now--to bring them into
the spotlight\'s bright glare.

\"SEC regulations are slight; about the only rules governing hedge funds are that an
investor must have at least $1,000,000 in net worth, or $200,000 in annual income,\"
says legal thriller author,Jack Payne, former editor / publisher of Business
Opportunities Digest, and author of 55 business books. \"And, these rules have been
in place since 1982 So, one has to think of the inflation push since then.

\"More and more people are being propelled into the \'eligibility\' classification.
More and more people are being solicited by these funds for their \'investment\'
contributions. More and more horrendous losses lie on the horizon,\" he concludes.
\"Combined, these factors can only mean more and more caution should be exercised
before investing. With hedge funds, billions of dollars can disappear faster than
ice cream in a microwave. Need I say more?\"


Web Site: http://www.sixhrs.com

Contact Details: Jack Payne
Impact Books
Box 1677
Magalia, California 95954
jackpayne@sixhrs.com
(530) 877-5462