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Industry groups contend that speculators are needed to maintain liquidity.
Taberner said the group was confident these measures would enable it to "maintain liquidity".
A key way that Stewart facilitated the operation, Ali claimed, was by helping T.I.B.C. to maintain liquidity when its loan book was not generating money.
And late last month the UAE Central Bank made $13.6bn available to maintain liquidity in the face of a local credit squeeze.
Bankers frantically called the Fed, and it dutifully stepped in to prevent an economic collapse — by lowering interest rates and providing credit to "maintain liquidity".
Because they maintain liquidity for their investors, hedge funds and mutual funds cannot bid to take outright control of public companies or invest in private companies.
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The urgent need is to maintain liquidity keep the loans flowing.
Advocates say it provides important information about investor views on companies, and also maintains liquidity.
For those whose work is not countercyclical, the greatest pain may be ahead, he said, adding, "Maintaining liquidity is probably the most important thing you can do".
Fortunately authorities do not seem overly fussed with moral hazard at a time when the preoccupation needs to be maintaining liquidity and orderly markets.
"However, the potential impact of direct federal aid, which certainly will exceed $20 billion, and of Federal Reserve actions at maintaining liquidity and the potential impact of new income tax cuts ultimately will be significant stimulators of the regional economy".
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