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The Fed Can't Save Hedge Funds

By Jim Cramer

 About this article:
 I'm sick of hearing about moral hazard and the bailing out of hedge funds. The Federal Reserve can't save hedge funds, only investors can and my bet is that the less brain-dead investors -- there are always people in funds who have no idea what's going on -- will still pull out and leave the most aggressive long cheap/sell dear funds in the dust. In other words, there's more than just one form of pressure on these funds. There is position pressure -- how do I get out of Take-Two Interactive, IndyMac and Novastar, or any of the 2005-2006 mortgage banks that no one wants, and there is investor pressure to get money back. I don't believe that the credit departments of Merrill Lynch or Goldman Sachs or Morgan Stanley are at all going to change their collateral demands because of the Fed. Money will still be...

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