>> Just a FYI ....

>

>> They are funds that are not hedged. Therein lies their woes.
>> They have large income statement, but, a tiny balance sheet.
>> Now that the water (economy) is receding.

>

>> They are caught swimming naked .... :)

>
> ltlee:
>

>> If I have shorted the market, I will cover now.

>
> For the faint of hearts ....
>
> The kitchen is hot, for good reasons. If one were to examine
> the market technicals and fundamentals,  one can readily see
> that it will be highly volatile. And it will remain so until
> the market could see some light at the end of the tunnel.
>
> Which, will remain dark for a while, and, may get darker.
>
> Institutions are not lying down and play dead. They're using
> their gimornous clout, to keep the buying and selling spread
> low. They're controlling the market volatility by throttling
> the spread at will. The result are intense whipsaws that can
> bring financial ruin to novice ttaders.
>
> If one is adverse to heat, one should stay out, and lie down
> comfortably in a cool, quiet place, until one's urge to play
> the stock market safely subsided. The sideline, is a respect
> -able place to be in in times of turmoil, especially for the
> inexperienced.
>
> To the market uninitiated, hedging is an extremely important
> concept. One must, at all times, know one's maximum possible
> exposure and potential losses.
>
> Or face utter financial ruin .... :)
>
> BTW: Unmitigated financial exposure to both the USA and EU,
>      is precisely the woe of AIG. And that of Lehman's, was
>      an inconvenient margin calls.
>
> Regards,
>
> Albert K. Fung
> Casa Tres Palmas, Santa Ynez, California, USA.
>
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