Three early lessons from the subprime crisis

Academic Paper

European leaders, eager to be absolved of responsibility for last summer's crisis, laid blame on the seemingly detrimental role played by hedge funds. France and its president were quick to cast funds in their usual role as scapegoat. Coming from a country with a social and political tradition of blaming its woes on the market, on demands from abroad and on international finance, this condemnation reverberated widely.

Not only is criticism of hedge funds groundless but it helps to hide the true c