Many hedge funds represent highly leveraged plays with a high level of focus as to the underlying assets in play... There is approximately 100 billion in the energy asset plays and a few funds bit the dust with a simple $75 to $60 move in oil... The total debt picture for equities is approximately $16 Trillion.... http://www.wallstreetandtech.com/sh...4TKMGKQSNDLOSKH0CJUNN2JVN?articleID=193003650 ................................................................................................. The Templeton group has priced oil in the mid $40s for 2007...and it is certainly likely that a $75 to $45 move will precipitate some more leveraged plays biting the dust... This asset class only has $100 billion to unwind... The equities class has $16 trillion in debt against it... If one player balks...this can create sudden havoc in the marketplace.... ......................................................................... Definitely more risk of above average moves .....
Not really. How is the alleged 100-billion-dollars of speculative money spread out in the energies? Is it 100% long? Is it 50% long & 50% short? Is it all in cash? How much is it leveraged? At most, it'll only be a teeny-tiny crisis if anymore meltdowns occur. Stay tuned.