Who's Watching The Hedge Funds?

The saga of Long-Term Capital Management continues to amaze. It may be that hedge funds in general contribute to the overall liquidity and smooth functioning of markets, but LTCM's brush with near-death highlights the need for disclosure and oversight of all financial institutions, both by private lenders and by government regulators. LTCM's flameout came close--too close--to seriously hurting the entire world financial system.

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