Get Me Out of Here! Hedge Fund Investors Trapped in Foreclosure Nightmare

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Some of you no doubt will find this amusing, or perhaps a kind of karmic payback: A bunch of rich people who invested in a Bear Stearns hedge fund are losing a ton of money because of the subprime crisis, and they can’t pull their money out of the fund.

Business Week: ‘The situation is so bleak that Bear Stearns’ asset management group is suspending redemptions at the onetime $642 million fund—meaning investors have no choice but to sit on their losses. And that’s got some hopping mad.’

More: ‘At the end of the day, I’d like someone to be honest with me about what’s going on,’ says one investor in the hedge fund, which bet heavily on bonds backed by subprime mortgages.’

Do you really want someone to be honest with you? OK, here goes: You gave your money to some guys who gambled with it and lost. Under their rules, you can’t take your money out now. Understand now? This is why hedge funds are supposed to be for rich people: you can lose a lot of money.

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Photo Credit: Reuters