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Hedge funds

Are hedge funds the next class of financial institutions to start collapsing? They face record demands for redemptions and are highly geared.  Their share prices are taking a hammering.  Who would want to invest in them these days? High fees and lots of gearing like sub-prime mortgages are acceptible when asset prices are increasing since investors can always at least get their money back. Now they cannot. This crisis has a long, long way to run and the $700b bailout, even if it is eventually passed by the US Congress, is not going to resolve things entirely.

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