Sunday, October 26, 2008

How many shoes have dropped so far?

Calpers unloads stock

Yes, it's come down to this: The nation's largest public pension fund needs cash. As explained by the WSJ, Calpers has to meet commitments to various investors - among them private equity firms and real estate partners - and only 2 percent of its assets on hand is in cash. That’s not enough to cover its obligations, so a bunch of stocks are being sold - fast. This need to raise cash quickly could partially explain why stocks have fallen so sharply so quickly. Hedge funds face much the same problem because many of them are so highly leveraged. And because they don't have to file financial reports, no one knows how many more of their dominoes will fall.

Posted by gardeniadotnet @ 01:52 PM (637 views)
Please complete the required fields.



One thought on “How many shoes have dropped so far?

  • gardeniadotnet says:

    Apropos of nothing in particular…

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>