The Ridiculous Demonization of Hedge Funds Has Returned

Way back before the Great Collapse on Wall Street, hedge funds were the official demons of finance. The lightly regulated, independent alternative investment managers were said to pose systemic risk because they were operating outside the rules that wrapped more traditional investors and funds.

Of course, when the collapse came it erupted right out of the heart of the most regulated parts of the financial system: Fannie and Freddie, the monolines, the world’s largest insurance company, the biggest banks, the most well known Wall Street firms, and the ratings agencies. Everywhere but those demonized hedge funds.

But hedge fund demonization is back. Here our John Carney explains why it is still ridiculous on CNBC’s “The Call.”



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