A Wall Street Journal reporter wrote a piece on hedge funds looking to find bargains in beaten down bank stocks. At one point he wrote this paragraph about the hedge fund investors: "Since it is harder for investors to borrow money at reasonable rates, they won't be eager to be buyers unless prices are marked down further. That all suggests troubles in the financial market will get worse before they get better. And most of the money being raised seems aimed at investing in distressed companies, not securities, suggesting more write-downs of mortgage-related assets if housing doesn't perk up."
What the h--- does that mean and how does he get from Point A to Point B? If you can explain that, you're smarter than I am. Does this validate the snide comments we hear about financial reporters or am I missing something here?
As always, your comments are welcome.
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