Hedge Hogs

Robert Kuttner talks about the most visible and dangerous development in contemporary capitalism, the hedge fund, that unregulated engine of the rich to create outrageous personal wealth while endangering the economic lives of everyone else and, indeed, the entire financial system.

Beyond the risk of a crash, hedge funds and private equity operators are driving the wrong brand of capitalism. Theirs is a capitalism of windfall returns for financial engineers, and less security and income for workaday Americans. Hedge fund capitalism also signals that real entrepreneurship -- patiently nurturing a new idea and building a company of managers and employees -- is for suckers.