Monday, October 06, 2008

Yes, It Can Get Worse

Pretty crazy day on Wall Street.  Can it get worse?

Yes.  There is going to be a very large wave of hedge fund failures off of this and when those guys need to start winding down, the selling could get intense.  The fact is that there are just too many hedge funds and they can't all beat the market.  Too many of them have been taking on more risk than they admit in an attempt to generate excess return.  Their world is crumbling.

It is going to be very, very ugly soon.

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