- Hedgies are still dying like flies, Makes the pop-corn sound in a microwave, pop-pop-pop (This morning: Tisburry, Pentagon, JWM-Meriwhether (of LTCM fame)).
- Lehman is facing renewed pressure and the short hedges are sweating them (drops 8%) on "rumors"
- Iceland (via RGE): "Doubts over the health of its highly-leveraged banks... To prevent a confidence run ... Thor Herbertsson said speculation of a crisis is “close to becoming self-fulfilling.”
I have hypothesized in the future that the hedgies death rate is probably a sweet spot indicator of the unfolding financial crisis. They are late and early in the sense that they are first in line for margin calls and they in turn impact the markets. The bottom may be within a quarter...