The BBC’s ever-present business correspondent Robert Peston has referred in his blog to an email exchange uncovered at Lehman’s describing a conversation with the US Treasury Secretary Hank Paulson, which reveals his ambition to heavily regulate surviving hedge funds. Nor is this very surprising. The hedge funds ‘shorted’ the banks, helping drive them into disaster, just as they have made a massive amount over the past week by shorting the stock market. Imagine in ten years time Chinese hedge funds shorting the US dollar, as the hedge funds did to the Far Eastern currencies in 1997. The mere possibility reveals the truth: we can’t go back to business as usual. American national security rules out the old dispensation.