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2008-11-13 — nakedcapitalism.com
"...with stock prices low and trading in equity and other markets thin, forced selling by hedge funds is even more disruptive than at normal times. And with hedge funds deleveraging for a whole bunch of reasons (margin calls, investor redemptions, tougher standards at prime brokers), distress in one market leads to margin calls, which can lead hedge funds to sell not the asset subject to the margin call (if that market is tanking, you will get a terrible price and would make any similar positions worse) but one that is less impaired, which could be in a completely different market."
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