Askier they could do imo, anything is possible im more worried about this,the U.S. Congress is so terrified that hedge fund selling is about to crush Wall Street or even destroy our entire financial system, it’s holding special hearings on this very issue right now — today!
On the hot seat: Five hedge fund managers who earned more than $1 billion in salaries and bonuses last year — George Soros ... Phillip Falcone ... John Paulson ... James Simons ... and Kenneth Griffin.
But why is Congress in such a panic to hold these hearings TODAY?
FIRST, because, like I told you yesterday, just this week, George Soros told an MIT audience that up to two-thirds of the world’s 10,000 hedge funds — massive investment pools with $1.9 trillion in assets — will FAIL in the weeks ahead!
If anybody should know, it’s Soros. And if he’s right, up to 66% of those $1.9 trillion will soon be dumped onto the market and deal a near-fatal blow to stock investors worldwide.
SECOND, because a huge deadline is less than 24 hours away ...
You see, as a rule, most hedge funds only allow investors to ask for redemptions once each quarter. Many of them require that investors who want their money back must ask for their redemptions before THIS FRIDAY!
These hedge funds will then have just 45 days to raise the cash needed to repay investors before yearend. So beginning next Monday, many of these huge funds will have no choice but to dump assets to repay their investors!
Given the fact that hedge fund investors are suffering the greatest losses in recorded history — and that many believe things will only get worse in the months ahead — the carnage is expected to be massive and extend into every sector of the market.
We’ve already had a sneak preview of what could happen: Despite the fact that most funds only redeem their shares at the end of each quarter ... and despite the fact that others flatly refused to redeem investors’ shares in October ... hedge funds were STILL forced to refund a staggering $100 billion in invested funds last month alone!
The impact is devastating: These funds are so massive, many own 30% ... 50% ... up to 100% of the stock in some companies. When they’re forced to dump those shares on the market, they could bring Wall Street to its knees.
The handwriting is on the wall. My forecast ...
We’re staring down the barrel at a massive stock market fire sale .
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