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Week in Review

To short or not to short? That has been one of many questions swirling around the hedge fund industry since the financial crisis of 2008.  Some of the same hedge funds who profited from shorting the mortgage and housing sectors have targeted Fairfax Financial Corp. which is suing them over unflattering comments the funds have made about Fairfax.  The newest complaint  accuses Third Point of lying about research it says is behind its short position.  In defense of shorts is James Baker, head of the Alternative Investment Management Association who writes in a guest column in the FT that, among other benefits, short selling “offers regulators a useful way of anticipating trouble.”

Listed.  Time published its list of the 25 best financial blogs and Paul Krugman weighs in with his list of favorites.

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