Does anyone remember Russia, Ukraine, Pakistan, Ecuador, Argentina, Moldova, and Uruguay, or going back even farther, Turkey? For hedge funds in particular, Dubai World's $59 billion problem of not quite being able to pay the interest it owes on its debt has far wider reaching ramifications Most notably it has a financial and psychological impact on investors already leery of trying to earn something more than a 2 3% return, and relying on hedge funds to follow the emerging markets wave to get it for them The conundrum is plainly and eloquently summarized in a weekly commentary published last week from noted economic research firm Bank Credit Analyst Chen Zhao, the firm's managing editor and head macro thinker, took aim at hedge funds, particularly funds of funds, noting that their ability to generate the yield investors are looking for and expecting is "is actually hard to achieve, especially in a world of zero interest rates and with enormous financial and economic uncertainties"