I think you need to look at the fact EVERYTHING fell last night...

I think you need to look at the fact EVERYTHING fell last night - EVERYTHING !!!!!!! even gold.

Have heard reports of punters taking money out of hedge funds and going to cash - understandable since the hedgies can only trade long now (at least on US financials) so profits will be smashed - a run on the hedge funds instead of the banks

If you had cash in a hedge fund who had one arm tied behind its back and cant do its finely tuned bear raids anymore so might go to the wall - would you leave ya money in them when the US Gov give protection to cash in banks - would you leave your money in a hedge fund that may go to the wall due to shorting ban - or take it out and put it in a bank where gov protects it

Consequence - hedge fund have had to liquidate positions to convert to cash to meet demands for withdrawals.

Thats what I suspect was happening last night but happy to hear alternate views