( www.washingtonpost.com ) – Wednesday, October 19, 2005 – It starts with a good idea that yields spectacular returns, attracts much money and generatesgreat wealth for those at the top. With so many people doing the same thing, investment returns decline, as do ethics and the quality of financial reports. Then come the scandals, the lawsuits andthe rush for the exits, followed at times by convictions or regulatory settlements.
We’ve seen it before with railroad stocks, junk bonds, third-world debt and tech stocks. Now it’s happening again — with hedge funds.
