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Hedge funds and banks feel wrath of the G20

Date: Monday, April 6, 2009
Author: Financialadvice.co.uk

Even though the G20 consists of the most elite governments around the world, who between them handle the vast majority of international trade, it seems many are unwilling to take any share of the blame for the ongoing worldwide recession. In a similar vein to leaders in the US and the UK, hedge funds and the banking sector in general have come in for significant criticism amid suggestions they have "caused" the ongoing problems around the world.

While there is no doubt that certain financial operations and financial sectors have taken on significant risks, which have backfired, they were within a regulatory environment which encouraged such "entrepreneurism". However, now that the worldwide economy has collapsed it seems as though everybody should blame the banking sector and hedge funds in particular even though they operate in a "free market economy".

More and more people are suggesting that the blame game should end today and all governments and agencies around the world pull together for the good of the worldwide economy. While the recent announcement from the G20 has been well received, it may take more funding and different approaches to pull the world out of recession.