7000 dow. here we come.wont be long now, page-47

PP

Whilst I take your point about investors being able to place redemption notices all the while.

A Couple of points:

1. The HF must give the money back to investors by 31 Dec with regards to redemption - hence the timing of redemption notices are either 45 days or 90 days in advance.

2. Some HFunds have been freezing funds so that they are not forced to sell selected investments that have tumbled in price.

3. George Soros even states that they will shrink by 50% - 75%.

4. As more losses are reported by HFunds more cash will be pulled out - the negative loop.

5. Those sitting or hoarding cash are the smart ones.

6. The "CDS scare" whilst not obvious in the way it is working it's way through the system is happening which is why there is the need for continued money to AIG for eg. Heck it is why AIG were bailed out - look to the recent news as to what the CDS for AIG are doing - they are going back up to the levels immediately prior to their bailout!

With the govt propping up the banks - that certainly placed some changes in the way this will eventually fall. Also with the news now that the "bail-out" will not include toxic mortgages assets - this will too have an effect in the CDS market.

There is much time for this to play out when you look at the ARM resets for one and then also any collapses of GM, Ford, countries etc. Stay tuned to this end of the market it ain't over by a long shot.