Roubini Says `Panic’ May Force Market Shutdown, Fund Failures

Alexis Xydias and Camilla Hall
BLOOMBERG
Thursday, October 23, 2008

Oct. 23 (Bloomberg) — Hundreds of hedge funds will fail and policy makers may need to shut financial markets for a week or more as the crisis forces investors to dump assets, New York University Professor Nouriel Roubini said.

“We’ve reached a situation of sheer panic,” Roubini, who predicted the financial crisis in 2006, said at a conference in London today. “There will be massive dumping of assets,” and “hundreds of hedge funds are going to go bust,” he said.

Policy makers delivered global coordinated interest-rate cuts and bailed out banks this month to try and stem the crisis, stopping short of trading suspensions in the Group of Seven industrialized nations. Emmanuel Roman, the co-chief executive officer at GLG Partners Inc., predicted at the same event today that as many as 30 percent of hedge funds will close.

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“Systemic risk has become bigger and bigger,” Roubini said at the Hedge 2008 conference. “We’re seeing the beginning of a run on a big chunk of the hedge funds,” and “don’t be surprised if policy makers need to close down markets for a week or two in coming days,” he said.

Italian Prime Minister Silvio Berlusconi roiled international markets on Oct. 10, first saying world leaders were discussing shutting down global financial exchanges, and then saying he didn’t mean it.

`Darwinian’ Crisis

FULL STORY CLICK HERE

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5 Responses to “Roubini Says `Panic’ May Force Market Shutdown, Fund Failures”

1. Paulson is an idiot Says:
   October 23rd, 2008 at 3:48 pm

   The solution is to dip the dog in a flea bath, but the flea’s (hedge fund managers) of course, will NEVER want that, so instead, they would rather sap ALL of our money and hyper-inflate it, destroying everything.

   All done, in order to save the flea’s themselves.
   http://www.larouchepac.com/new.....rence.html

2. V Says:
   October 23rd, 2008 at 3:52 pm

   Didn’t Mitt Romney make all his money in hedge funds?

3. CanadianSympathizer Says:
   October 23rd, 2008 at 4:06 pm

   Umm, Flying Finn, the story didn’t disappear. Check this link — http://www.bloomberg.com/apps/.....3ZRmJRccyo

4. asjhae Says:
   October 23rd, 2008 at 5:56 pm

   Yeahhhhhh, Boyeeeee………

   Let that sucker crash…….Free at last, free at last.

   Everyone vote Third Party!!!!!!!!!!!

5. mr_bad Says:
   October 23rd, 2008 at 8:20 pm

   Well, if there are a couple more 500 point down days there will be a full blown meltdown and people will liquidate everything. We haven’t hit a bottom yet.

   We’ll see the DOW shoot down to 5,000, and they will shut it down. and people will be hitting the streets.

   There’s absolutely ZERO confidence right now. People are sensing the evil and they don’t trust anyone.

   I was watching CNBC these last few days and nobody has any answers. Everyone’s throwing in there 2 cents but no one knows what’s going on. So, don’t be surprised if there is an even greater crash in the near future.

   Investors are sick and tired of the corruption. It’s a rigged game. Everyone’s who’s invested has lost money. Congress isn’t helping the situation by saying there not assigning blame to anyone when people want to see heads on pikes. So, instead of waiting and seeing they’re taking their money out of the market, and rightly so.

   Bush’s legacy will be he destroyed America’s economy.