Het Neoliberale Geloof 62

'Talk of Worst Recession Since the 1930s
By DAN DORFMAN

After what Los Angeles
money manager Arnold Silver called "a brutal three days," the
question is: What now for the market?
A Wall Street superstar this year who runs Balestra Capital Partners, Jim Melcher,
says he's "worried about a recession. Not a normal one, but a very bad
one. The worst since the 1930s. I expect we'll see clear signs of it in six
months with a dramatic slowdown in the gross domestic product."
Balestra
Capital, a $350 million New York
hedge fund, was up 3% for the past three market sessions, when the Dow Jones
Industrials, spearheaded by widespread declines in financial stocks and fears
of more billion-dollar-plus asset write-downs, tumbled more than 677 points,
or about 4.5%. The Nasdaq fared worse, skidding about 7%, triggered by across-the-board
declines in those fast-stepping technology stocks.
Balestra
has increased in value by 175% so far this year, Mr. Melcher tells me. A
9-year-old fund, it has posted compounded annual growth of about 30% since
its inception.
Mr.
Melcher, a market bear, had some pretty discouraging words. "What I
think is not good for the country, but good for me." he says. His basic advice to the country's roughly 80 million
stock players: Run for the hills — the worst is far from over. An investor's
stock portfolio now, he believes, should be only about half of what it might
normally be.'

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