My oh my. The Powers That Be - which in my model are those various factions of elites that run, or think they run, the organizations that set the cultural trends, own political figures via donations, run the courts, move massive amounts of money around, run the banks, run the large corporations and own massive amounts of property the world over - are watching their assets go up in flames. Now, one of their favorite vehicles for growing their assets (the hedge fund) is sticking it to them.Hedge funds hit by fresh wave of withdrawals
By James Mackintosh
Hedge funds have been hit by a fresh wave of withdrawals as investors search for cash, prompting more funds to impose emergency measures to block repayments.(h/t Mish)
London Diversified Fund Management, one of Britain’s best-known fixed- income managers, on Friday suspended both its hedge funds as trading conditions in the derivatives markets created valuation difficulties ahead of redemptions...
...Morgan Stanley said there has been a sharp rise in redemption requests by hedge fund investors as the year-end repayment date approaches. The bank, the biggest prime broker, estimates year-end redemptions for funds that require 45 days’ notice for withdrawals of money, are running at 18 per cent, against 9 per cent for funds which required 90 days’ notice...
This kind of thing is supposed to only happen to the little people, the chumps investing in mutual funds and bank savings accounts. Only now, "they" are getting a dose of bitter medicine. How will these big playerz react when they can't get "their" money out? Will they go to the courts? The guvmint? Ask for a bailout?
As more and more issues like this crop up, pitting the finance playerz against the old money big-shots, the big-time judges, and the top echelons of the rentier class, the pissing matches should get fierce. I wonder how this will shake out when the various factions start fighting one another over how best to save the system of finance and intrusive government that has made them so powerful and wealthy over the last six decades?
Grab some popcorn. Should be one hell of a show in 2009.