Hedge funds warned G7 ministers of impeding financial doom in 2007, were ignored

Immediately after the presentation, the G7 ministers issued a statement continuing to insist that their economies were strong and made no mention of the warnings. Check out the G7 Communique of the time – you won’t find a clearer example of the complacency of world politicians and regulators.

We were completely and officially ignored,” said Chanos.

A year later the financial world was in shambles, precisely due to what the hedge funds warned about – over-leveraged garbage securities held by banks.