(via CEO shocks business news host, says billionaires and bad companies ‘deserve to get wiped out’)

PALIHAPITIYA: These hedge funds are massively levered. You know you heard earlier about risk parity funds blowing up. These are not funds that are trading billions of dollars—Scott, when you go to a prime broker with $25 or $30 billion of Treasury securities, they’re allowing you to lever that up 10, 12, 13 times. In the case of some of these hedge funds, $100 billion funds running trillions of dollars of notional exposure and they are completely roiling the capital markets. They are turning around and turning upside down people’s 401ks and people’s pensions, driving companies down 70% when they maybe should only be down 30%. Somebody needs to answer for that volatility.