Comments on: A Little Respect http://www.ritholtz.com/blog/2008/12/a-little-respect/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 11:47:29 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: DP http://www.ritholtz.com/blog/2008/12/a-little-respect/comment-page-1/#comment-130513 DP Thu, 04 Dec 2008 04:38:42 +0000 http://www.ritholtz.com/blog/?p=11820#comment-130513 Hedge funds locking the doors seems very short sighted to me. The best way to make someone suddenly want to withdraw their money from a fund they were quite content to leave there is to tell them "you can't withdraw your money". Isn't this how a run on the bank starts? Customers rushing to withdraw their cash for fear that it might not be there when they need it. Hedge funds are creating their own problems and they might just find once the bridge gets lowered that 40% becomes 80%. Hedge funds locking the doors seems very short sighted to me. The best way to make someone suddenly want to withdraw their money from a fund they were quite content to leave there is to tell them “you can’t withdraw your money”.

Isn’t this how a run on the bank starts? Customers rushing to withdraw their cash for fear that it might not be there when they need it. Hedge funds are creating their own problems and they might just find once the bridge gets lowered that 40% becomes 80%.

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