And the Great America Going Out of Business / Hedge Fund Liquidation Sale of 2008 continues
October 23, 2008
Leverage, fun on the way up, sucks on the way down.
Thank you Hank Paulson (at Goldman) and Chris Cox (at SEC). Yup, 40 to 1 ratios, sounds like a GREAT idea. FABULOUS idea!
Not.
The Hedge Fund Contagion
Stocks, bonds, and commodities will suffer as funds dump assets. Anyone with a 401(k) will get hit
Investors on Main Street have another reason to fear opening their brokerage statements: the rapidly shrinking hedge fund industry.
In the coming months, hundreds of hedge funds may shut their doors, sparking a massive fire sale on all sorts of investments. Just about anybody with a 401(k) or pension plan will feel the pain, since the sell-off will only exacerbate the plunge in stocks, bonds, and commodities—which make up the core of most people’s portfolios.
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Real Estate Foreclosure.
