Why Isn’t There A Hedge Fund Bailout?

Atlantic Online – For all the talk these last few years about the risks to investors of "secretive, unregulated" hedge funds, they certainly haven’t turned out to be the big problem, have they? Thousands of hedge funds lost, in the aggregate, hundreds of billions of dollars last year, and hundreds have shut down. But nobody in government is calling for a hedge fund bailout because hedge funds losses, however painful to investors, don’t create systemic risks to the nation’s financial apparatus. As it turns out, it was the big regulated entities, the banks and investment banks, that were the problem, not the unregulated hedge funds.

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