Hedge funds may not have been a big part of this crisis. But the next to last major financial crisis is a case study in this: http://en.wikipedia.org/wiki/Long-

Hedge funds may not have been a big part of this crisis. But the next to last major financial crisis is a case study in this: http://en.wikipedia.org/wiki/Long-Term_Capital_Management http://en.wikipedia.org/wiki/Long-Term_Capital_Management Hedge funds were also more a result of a lack of regulation, or side-stepping current regulations by being defined differently, not so much a matter of deregulation. See it as regulators not stepping up or not allowed to step up and adapt. It's not like regulation serves to make any financial crisis avoidable. But smarter, more adaptable regulation can limit the depth of the rot, help shore up the integrity and health of the financial system, and possibly allow for a softer landing.