Maalox Moments

by digby

It looks like tomorrow may be “interesting.” Lerxst reports:

We may have even more chaos to look forward to in financial markets tomorrow as hedge fund redemptions cascade in for the end of the quarter as the NYT reports:

The big worry is that a spate of hurried sales could unleash a vicious circle within the hedge fund industry, with the sales leading to more losses, and those losses leading to more withdrawals, and so on. A big test will come on Tuesday, when many funds are scheduled to accept withdrawal requests for the end of the year.

“Everybody’s watching for redemptions,” said James McKee, director of hedge fund research at Callan Associates, a consulting firm in San Francisco. “And there could be a cascading effect, where redemptions cause other redemptions.”

Krugman obliquely referenced this earlier today:

… there’s a serious chance of a run on the hedge funds, which could make things a lot worse.

Just passing it along …

Oh, and in case anyone’s still wondering why the administration has no credibility, get a load of this.

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