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At the height of their powers, the hedge funds were virtually linked to central governments who treated them like the royal equivalent of the business community. The kinds of resources that they were able to muster were so impressive that the normal restraints that government tends to place on business were abandoned in favor of a sycophantic attitude.

This article aims to examine what the role of the government was as opposed to what it should have been. This exercise is undertaken to give governments the possibilities to improve the framework for dealing with the hedge fund in the future when it resurrects at some time in the future.

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