Friday, October 24, 2008
The Light at the End of the Tunnel has been turned off.
Regulators could be forced to shut down markets for as long as a fortnight in order to stanch the panic beginning to beset the hedge fund industry, a leading expert predicted yesterday. Nouriel Roubini, a professor at New York University, told a London conference that hundreds of hedge funds are poised to fail as frantic investors rush to redeem their assets and force managers into a fire sale of assets. He said: “We've reached a situation of sheer panic. Don't be surprised if policymakers need to close down markets for a week or two in coming days.”