A $3 billion equity infusion into one of several troubled
Goldman Sachs quant funds did little to calm markets this week
as margin calls and redemption notices at hedge funds coupled
with more mortgage woes continued to take their toll.
U.S. equity markets moved closer to official correction
territory Thursday before recovering late in the day, amid
cries for the Federal Reserve to lower interest rates
immediately. An indication of just how dire the situation is,
the Fed announced an emergency half percentage point cut in the
discount rate on loans to banks before markets opened
On Thursday, the $30 billion Bridgewater Associates, the
third largest-hedge fund according to the Absolute Return
Billion Dollar Club, called for the Federal Reserve Board to
cut rates but backtracked Friday. Bridgewater described
the current developments as very similar to 1998, when the
Russian debt crisis caused the implosion of hedge...