It's Time To Clip The Hedge Funds

Long-Term Capital Management's spectacular crash and subsequent $3.6 billion rescue is the wake-up call that regulators everywhere needed ("The Fed steps in: Will it work?" American News, Oct. 12). For too long, governments and regulators have ignored the activities of the so-called hedge funds. The argument that hedge funds are tightly supervised by their management and creditors lulled regulators and analysts into believing that they can be self-regulated. The truth is lenders and borrowers are too greedy and vainglorious to be left on their own.

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