The funds respond to such proposals by arguing that if they are required to reveal their investment strategies, they will lose their incentive to innovate, and a recent US government report – a multi-agency effort headed by Treasury Secretary Hank Paulson (formerly of Goldman Sachs) – supports that position. Greater regulation would be a mistake, the report argues, because the global economy’s best defense against systemic risk is the exercise of common sense and “due diligence” by each and every person who invests or interacts with hedge funds.