I am wondering how much hedge fund redemptions are responsible for the current sell-off

[Phoebe Loosinhouse]

Remember our friends- the unregulated hedge funds with their billions and billions of dollars? The hedge funds are the mattresses for the uber rich and even they have been unnerved by current events. My understanding is that most funds have pretty severe rules about redemptions, only certain windows of time where they can be executed with so much notice, etc.

My opinion is that the people in the hedge funds were/are the corrupt CEO's and executive classes who fleeced us all on the way up and now they are precipitating the loss that nails us on the way down.

When so much wealth is concentrated in so few hands, the entire world financial system becomes subject to their vagaries. OBVIOUSLY hedge funds need oversight and regulation. I think the government should freeze them so they don't literally bring down the entire house.

[Junkdrawer]

1. See my post from yesterday...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4206087&mesg_id=4206087

[Phoebe Loosinhouse]

2. Thanks good info and pretty much what I suspected.

The point about the Libor rates causing ARMs to go up, causing yet more mortgage failures was also a good point.

[gopbuster]

3. Two more possible factors

Margin calls-unconfirmed rumor is margin requirements were raised in brokerage houses yesterday from 30% - 45% this could force selling DELEVERAGING across the board. I would have to call brokerage to confirm but I don't have a brokerage, maybe someone can

They let the shorts loose yesterday.

Just a couple thoughts