Nouriel Roubini this weekend talked about the next step of the crisis:
"The next stage will be a run on thousands of highly leveraged hedge funds. After a brief lock-up period, investors in such funds can redeem their investments on a quarterly basis; thus a bank-like run on hedge funds is highly possible. Hundreds of smaller, younger funds that have taken excessive risks with high leverage and are poorly managed may collapse. A massive shake-out of the bloated hedge fund industry is likely in the next two years."
Source: FT
Monday, September 22, 2008
Nouriel Roubini Thinks Run on Hedge Funds is Next Step
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