With modern technology and a degree in advanced mathematics, everything is capable of being securitised. Derivative instruments are then created on top for those with a different appetite for risk, and then yet further layers are introduced to customise the product out yet further into the marketplace.Does all this frenzy of activity really make economic activity more efficient? The theory has yet to be unambiguously proved, but what it certainly does do is make markets much harder to understand and their faultlines far less easy to see. This may be an old-fashioned view, but simplicity and transparency are generally the badge of reliability. Obfuscation and complexity are its very antithesis, and the truth is that this is what hedge funds specialise in.The reason hedge funds domicile themselves in places such as the Caymans and the Bahamas is not just for tax reasons, but because it makes them largely immune to the prying eyes of securities regulators. Nobody really knows what they are up to, least of all the FSA, and it sometimes seems doubtful they properly understand it themselves.The FSA may be right to leave the hedge funds alone. But for an organisation that deems it necessary to interfere in just about everything else, they make an odd choice for regulatory bypass.jeremy.warner independent.co.uk.

Elvis Costello was born Declan MacManus in London in 1954. He left school in 1972 to follow in his father’s footsteps and become a musician. In 1977, he signed with Stiff Records and began using the stage name Elvis Costello, based on Elvis Presley and his mother’s maiden name, Costello. While working as a computer operator, he recorded My Aim is True during his days off. The album, released in July 1977, made it to number 14 in the UK and became the biggest US import album of the decade Since then, he has released more than 30 albums His latest album, When I Was Cruel, was released in April.

His latest album, When I Was Cruel, was released in April.
How do you compare Blair with Thatcher? Do you want to tramp the dirt down on him too? Bob Fisher, Bath It would be like comparing blancmange with mustard gas. Nevertheless, something just as oozing and vaporous might seep up through any dirt thrown down on that craven and pious man. What a triumph for the advertising industry.Of all the songs you’ve written, which is your personal favourite? Emma Hart, Hove Today’s answer is: “Couldn’t Call it Unexpected No 4″. Yesterday’s was “My Dark Life” and the day before it was “My Science Fiction Twin” Tomorrow, I might prefer “When I Was Cruel No 2″. Actually, I never really think about it.I often listen to your music while in the kitchen ironing or cooking.

Do you cook or iron? Mary Wright, by e-mail Yes, but I find it risky to combine the two activities.What five songs do you wish you’d written? Sarah Beck, Lincoln There are no songs that I wish I had written. Here are five songs chosen at random that make me glad that someone wrote them: “My Resistance is Low” – Hoagy Carmichael; “Kid” – Chrissie Hynde; “Alice” – Tom Waits and Kathleen Brennan; “All the Things You Are” – Jerome Kern; “Every Grain of Sand” – Bob Dylan.”And the radio is in the hands of such a lot of fools trying to anesthetise the way that you feel.” Nothing much has changed in 25-odd years, then? Ken Isherwood, Sheffield Quite.Where do you get your suits? Charlie Fletcher, by e-mail Clayton Square in Liverpool.Do you still see Huey Lewis? Will Curtis, Oxford The last time I saw Huey he was in Robert Altman’s film Short Cuts, getting his willy out in the pursuit of art. Huey once played harmonica (and sang) with Clover, the band who provided the accompaniment on my first record. There is no harmonica on My Aim is True.Over the years, you’ve performed with many and varied musicians (Jimmy Cliff, George Jones, Burt Bacharach, Anne Sofie von Otter and Glenn Tilbrook, to name but a few). Which collaboration have you most enjoyed and who would you still like to work with? Emma Hart, Hove I can honestly say that I have enjoyed and learnt from working with each of these people and would do so again in a heartbeat.Do you think we can save the planet? Barnaby Miles, Skipton On recent evidence, I suspect our tenancy agreement is nearly up.The intelligentsia love you for your cutting, reflective lyrics and your refusal to toe the line.