James Sheehan

We should not expect new hedge fund regulation to correct the flaws of existing regulation. If the feds get their way, we might wind up with a kind of derivatives cartel. Hedge funds and their clients may face additional restrictions, justified as measures to prevent market manipulation. The coming rules should be seen for what they really are: government supports for the share prices of shaky companies.

In the Clinton administration's spin control on the Mexican meltdown, Nafta had nothing to do with it. Without the treaty, matters would have been worse, the White House says, and now Nafta will help Mexico recover.

Voter opposition to major "free trade" agreements helped propel a surge in protectionist rhetoric this year. Even constituencies when should be naturally free trade—Republican conservatives—have fallen prey to old fallacies.