Of course, it cannot be proved that hedge funds contributed to the financial crisis, as the Department of the Treasury said last week. However, it's more than likely that the top-performing hedge fund managers, those earning a staggering $1 billion a year in 2006, 2007 and 2008, were invested in the mortgage-backed and leveraged instruments that brought the economy to its knees.

Even after a federal appeals court in 2006 tossed out a controversial Securities and Exchange Commission rule that would have required hedge funds to register with the agency, the SEC and Congress have continued to talk about requiring hedge funds to register-to no avail.

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