Trouble in hedge funds?

I'm sure that Mr Bubble and the SEC were on top of any potential problems in this sector as well. So much so that Greenspan has even gone to work at a hedge fund.

Up to 10 European hedge funds have suspended redemptions after investors clamoured for their cash when the managers made severe losses.

A London prime broker told The Sunday Times that even before last week’s extreme gyrations, nearly two-thirds of London-based hedge funds had lost between 4% and 10% of their value. A “significant number” had lost much more, he said.

The manager of one of Britain’s biggest hedge funds said: “It’s been an extraordinary week. Even in the crash of 1987 I don’t remember so much carnage.”

Without bucket loads of easily available credit, things could turn ugly very quickly.