Do hedge funds control the market?
Selling continues as the market starts to feel more like 1929 than 1987 with the wide spread panic instilled across the global markets. Although the loss of confidence in the financial markets is a component of the sell-off the real culprit may be the financial titans known as hedge funds. Trillions of dollars tied up in hedge funds are the 800lb gorilla that is probably driving this market sell-off. Interest rate cuts and federal liquidity injection has little effect when Hedge funds are covering their losses from margin calls as well as shorting the market on the way down. Usually blood baths (or bull runs) such as these are of institutional origins from the big money.