Hedge fund gates put downward pressure on market

From Marketwatch, the Mariner distressed debt fund erected a redemption gate for the first quarter of 2009:

Mariner raises 'gate'

The article mentions at least 75 other hedge funds that have also put up gates to prevent what they consider fire sales of their assets. They have locked the horses in the burning barn. I would be very upset if I had money locked in a losing hedge fund.

This means there is great pent up demand for people to exit the stock and bond market. That's why every small rally is sold into furiously by hedge funds to try to meet their redemptions. It is made even worse by the degree to which each hedgie is levered. Until redemption demand works its way out, the market will continue to grind down.

Get out...if you can.