Fyodor Dostoevsky was inspired by his four years in a Siberian labor camp to write some of the most poignant literature in any language. While not quite rising to the level of the master's work, hedge fund managers' latest letters are unusually philosophical, a product of the prison mentality imposed by the chaos in the market that shows no sign of relenting.
Here are excepts, some hopeful but most gloomy, from embattled managers:
"It is the 'what's next' that scares us the most...The fact is that the U.S. and the world need a Darwinian flush to rebuild our foundations and become even stronger on the backside of this mess.
...In the mini-recession of 2002, we saw 12% cumulative corporate defaults and BB spreads to Treasuries reach a historic...