Hedge Funds Kaboom!
When I was at an investment conference in Jan of 07 I ran into a friend who was all the rave about hedge funds. What I'd briefly seen of them, well, I just wouldn't touch them. Later I saw estimates that about 10% of the hedge funds would completely implode, or about 500.
We've trinklings of what these hedge funds do to the markets when they implode, as a few have imploded, but they are under tremendous pressure now.
As they run into a position of having to sell off assets, well, the prices go down and then they have to sell more. This is tremendous downward pressure on the markets and other hedge funds.
Naked Capitalism has a post on this.
My fear of the hedge funds is also one of my reasons for being out of the market.