Apart from organic factors, about which little in the end, I believe, will be done, we have a world running on a casino-like system for fear of any alternative being worse.

That leaves us with the scars of mistrust to carry forward to what until recently was seeming like a brave new world

Allan, Glasgow, Scotland

This leaves us with the scars of mistrust to carry forward to what until recently was seeming like a brave new world of ever-increasing consumerism. Could it be that we will now have the worst of ALL possible worlds instead?

Allan, Glasgow, Scotland

The fault lies with politicians and their incestuous relationship with the financial world. Governments face responsibility for the financial meltdown by granting hedge funds, private equity funds and the speculators favorable tax status reducing tax revenue for the nation and encouraging greed.

peterfieldman, paris, france

Thank heavens. The Hedge funds are at the root of the global market crash. The abuse of hedging instruments as primary investments (as against insurance tools against the decline of currency, commodity or equity investment) must be prevented by regulators. Ex Treasury consultant for PW

Richard, Stanstead Abbotts,

Dave, Kelso: Sorros WASNT complaining. I am flat broke, but I think he is right: The hedge funds will be slaughtered. Let every one see they did it to themselves, and not have them blame regulation for their misfortune. I support greater regulation - but I want it to have a good image.

Andrew, London, England

Capitalism will eat itself, and Hedge Fund Managers will come back for seconds.

Matt, Hereford, UK

It's the respectable, regulated, taxpaying (up to a point) banks that have goofed up and created a crisis, not the unregulated hedge funds. We shouldn't be concerned either that they hedge funds used to make very large amounts of money or that they may not do so in future.

Frank Upton, Solihull,

Hedge funds serve a useful purpose as do most participants in markets if they act honestly and fairly. They contribute to the pricing mechanism which allocates scarce resources efficiently. Helping to identify and cut the prices of the rotten apples is what they do - such as RMBS, CDO's and banks.

N Reed, London, UK

Joseph Chamberlain said, "Banks are not the creators of wealth, they are created by wealth"
For years manufacturing in the USA and UK have been allowed to shrink as the financial sector took over.
Time to get back to work fellas creating products that people want to buy!

Norman, Grand Cayman, Cayman Islands

We need a financial system based on fundamental values, not on betting with other peoples money. If asset values fall, everyone should lose. Those who short-sell gain and make everyone else's losses greater. Don't reply with 'survival of the fittest' unless you've lived on the streets with no money

Mike Donovan, London,

It is the end of the spree. Is that not clear by now? Try doing proper work that produces something. Hedging is a spiv and always was, but I guess that is very difficult for you guys to ever admit. What are the job prospects for you now? Many people will be overjoyed to witness your comeupance.

James, Beckton, East London. UK.

Hedge funds have still outperformed the equity markets, even though it's their worst year.
Lots of hedge funds go out of business even in good years.
They don't cause the problems. They can only push on open doors.

ja, London,

Can they do Private Equity companies next please. This is another group that creates absolutely nothing new.

DickW, Aberdeenshire,

And whose fault was it they werent taxed enough - the UK and US governments - they were all in bed together. I thought the clever hedge fund managers made money no matter what the climate. Any idiot can risk the money of others to make large gains as there is no downside same as the banks.

HARRY, WARWICK, UK

We must draw away from the US-style consumption based economy. Such economies are essentially giant pyramid schemes and can never end well in the long term. France is posting growth figures at a time when most countries are contracting, proving the age-old saying 'slow and steady wins the race'.

Mark Johnson, Birmingham, UK

The deeper point is that all complex transactions add to the opacity and interdependencies of the markets. It's that lack of transparency and complex interdependence that causes massive lack of confidence when things go wrong. Hedge funds didn't cause the problem but they add opacity and complexity.

Paul Freeman, London, England

Markets thrive on transparency. Regulation should focus on encouraging and imposing transparency within the markets. Many of this year's failures seem to have arisen from the opaque nature of the instruments and the markets in which they operate. Lets regulate for transparency and not for politics.

Sholto, Edinburgh, UK

'George Soros tells lawmakers in Washington that crisis will wipe out three quarters of the money that hedge funds manage'

Oh I weep! I am so sad. Poor little billionaire. He's had it so hard!

Dave, Kelso, Scotland

Interesting theory about the hedge funds shoerting practices. Indeed the banks halved in value earlier this year. Then the ban on short selling financial stocks came in. The bank shares then slumped 60-80% more. Short selling is not the problem, Its a matter of confidence

h, Bath,

Hedge funds have, for years, argued that they thrive on strong trends and volatility. This year we have had both in spades and yet the hedge funds have had their worst ever year.

John Foley, LONDON , ENGLAND

This is wonderful news. Hedge funds serve no practical purpose other than to act as parasites feeding on the lifeblood companies, shareholders and whole markets. Good riddance to them all.

john, Shenzhen,

If you seed the wind,be prepared to reap the whirlwind

Richard Philpotts, Stratford Upon Avon, Warks

Great, "What Goe's around Comes around"!

Paul, manchester, UK