With markets continuing to swoon, the next shoe to drop is likely to be hedge funds. That means tough times for hedge-fund filled Greenwich, Conn. (As Nick Paumgarten wrote in the New Yorker magazine recently, "If New York City is the heart of the marketplace, Greenwich is the liver, where toxins are processed and rich bits collect.")

Associated PressA sunbather in Greenwich, Conn., enjoys the solitude and cool breeze off Long Island Sound. Greenwich collected so many rich bits in recent years that its small population of...