Over the Hedge

Signs of the coming hedge-fund apocalypse.

By Daniel Gross
Posted Tuesday, Feb. 13, 2007, at 7:16 AM ET

Because I'm writing a book about booms and busts in American history, I've spent a lot of time thinking about how real and rational economic trends cross over into bubble territory. For the Internet, residential real estate (now officially popped), and alternative energy, there were always telltale signs of bubbleness.

Those same signs suggest that our next bubble is already here, and it's … hedge funds.