Bill Gross: "Hedge Funds Liquidating To Preserve Capital"

In case you needed confirmation of the wipe out you are seeing on your monitors, here comes Bill Gross. Just headlines for now via Reuters:

  • GROSS: FINANCIAL MARKETS EXHIBITING "MINI RELAPSE" OF FLIGHT TO LIQUIDITY
  • GROSS: HEDGE FUNDS AND OTHER LEVERAGED POSITIONS NOW LIQUIDATING TO PRESERVE CAPITAL

So you mean Prime Brokers allowing 5x leverage for 130/30s was actually a bad idea?