Vulture Funds

Our featured post for today is Asabagna’s Into the Heart of Darkness, on vulture funds. Asa refers to two BBC articles on the devastating activities of vulture fund Donegal International in Zambia.

The Zambian instance at least received substantial news coverage. Oxfam is working on the case, and we can help. But awareness of this investment strategy really needs to be raised. It is one of the more vicious ways in which globalized capital widens the gap between rich and poor. I would say it is openly genocidal.

The term vulture fund is new to me today, but it is a type of hedge fund. These are investment pools, like mutual funds. As we know, mutual funds enable smaller investors to take best advantage of broad trends in the financial markets. Hedge funds “hedge” against unfavorable trends by taking positions whose returns are not closely correlated to those of the broader financial markets.

Vulture funds “hedge” by feasting on starving bodies. Watch them.

Axé.


One thought on “Vulture Funds

  1. Hey PZ! Thanks for featuring the issue of “Vulture Funds” on your site and adding to the knowledge about them. Like you when I first read the article my jaw dropped. As we Jamaicans say “hell gwaan fol”, which means “hell is gonna be full”. This is just as shocking as the Spike Lee documentary on “Katerina” and how the insurance companies were trying to screw people out of their claims, after they have paid a lifetime into their policy.

    Blessings.
    Asa

    Hi Asa, and: yes. “Hell gwaan fol” – what a fantastic phrase! –Z

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