Jobs Act Removes Limits To Hedge Fund Marketing Put In Place In 1933
Republicans have just introduced another bill gutting a regulation set up in 1933 . This now means private investment firms, aka hedge funds, will now be allowed to market their products to the mainstream investor.
This development is consistent with two long term theses we have held on here. One, that the hedge fund industry will go the way of the Dodo Bird as this cycle ends and two, the investor class will be obliterated. What better way to help create that dynamic than by allowing investors to place their assets in schemes that rely on methods unproven beyond the rise of Frankenstein finance. Ahem. There is a reason the hedge fund bubble is a recent phenomenon. And why similar previous schemes ended unfavorably. We have crucified Wall Street’s voodoo incarnations endlessly on here.
A fool and his money soon part ways. Investors and society as a whole oftentimes need to be protected from their own ignorance. Private betting schemes will now be marketed to the investor class unencumbered by protections. (Marketing in today’s world is fancy word for outrageous claims and propaganda in most industries.)
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zacherydtaylor
Rick Lucke
Snowden
Samasiam
libbyliberalnyc
Jack Heart
Salon.com
Comments
I have said we will fix this mess. But, I have also said it might be horrific beforehand.
Jokes aside there is going to be a blood bath in this country TL, everybody knows it and all the signs are there. The barometer is dropping and we are squarely n the path of a force 5 hurricane. These guys are all just trying to get as much as they can why they still can. The Times ran this headline about a year and a half ago: ‘Will the Federal Reserve Cause a Civil War?’.
http://business.time.com/2010/10/19/will-the-federal-reserves-next-meeting-lead-to-civil-war/
At the same time they were running that I remember reading unverified intelligence estimates that it was about a year and a half away.