Thursday, November 13, 2008

Hedge funds: part of the problem

George Soros, Phillip Falcone and Kenneth Griffin are part of the problem, not part of the solution. They are hedge funds managers, which have been, up to this point, largely unregulated by both Democratic and Republican administrations in Washington, D.C.

Anything-goes capitalism has practically looted and bankrupted the country, while Democratic and Republican leaders looked the other way.

As long as these kinds of people are allowed to get away and avoid criminal prosecution, this country will continue to unravel economically and socially.

Today, Henry Waxman, conducted hearings in his U.S. House Committee on Oversight and Government Reform. What a joke of a name for a committee. Imagine! Capitalists trying to reform their gangs! It is like inviting foxes to guard hen houses!

Excerpts from Bloomberg:

Hedge-fund managers have had unimaginable success and, while being virtually unregulated. Many enjoy special tax breaks, said Waxman. Today's witnesses, he said, earned on average more than $1 billion last year, profits they were able in many cases to treat as capital gains rather than as ordinary income, which is taxed at a higher rate.

``That means at least some portions of their earnings could be taxed at rates as low as 15 percent,'' Waxman said. ``That's a lower tax rate than many school teachers, firefighters, or plumbers pay.''

What Soros, Falcone and Griffin are saying is: “Screw Joe the Plumber, Jane the Teacher and Dick the Firefighter.” The hedge funds manager's symbol is a tube of KY jelly.

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