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Reasoned, Relevant And Often Contrarian Commentary On Economics


October 24
I'm an electrical engineer and mathematician by training. My career has spanned diverse areas of expertise from being part of a team which designed the world's most powerful computers to corporate consulting around business transformation and information-based solutions to being a corporate sales and marketing executive in the information technology and business consulting space. I’ve led teams responsible for innovative and transformative solutions and been part of teams that helped set strategy for many of America's greatest companies. Two of my interests are econometrics, democratic finance and quantitative - qualitative analysis. Over the years I have developed risk-based models and trading systems meant to identify significant investment opportunities and periods of extreme risk. My blog is an outlet for another of my passions, writing. I generally consider myself a contrarian. Therefore, many of my rantings are meant to encourage people to question what they believe to be true. Terms of Use & Disclaimer: First off, I don't take anything on here too seriously and you shouldn't either. These are simply sardonic rantings of Bill, my alter ego, often meant to agitate for peaceful & nonviolent reform. This web site reflects the views of its authors. It is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than its authors. The information on this site is provided for discussion purposes, comedic relief and entertainment only and are not investing recommendations. The authors may have positions in securities mentioned herein. Under no circumstances does this information represent a recommendation to buy or sell securities. While information discussed on this site was gathered from what are believed to be reliable sources, in no way is informational accuracy guaranteed. All information on this site may contain errors and omissions. Trading and investing involves high levels of risk. Always consult a licensed financial advisor or broker before making any and all investment decisions. Authors of this site and any sites which are fed by said site, including Open Salon and others, will assume no responsibility for the actions of the reader and user. Readers and users agree, as condition to accessing this site, to release and hold harmless this site's authors from all liability in connection with this site or any views posted on this site. All readers and users of this site agree that use of this site requires acceptance to the current Terms Of Use & Disclaimer and that current terms include any and all use and material from site inception. If you do not understand these statements in their entirety or do not agree to be bound by this current agreement, you must immediately discontinue use of this site. This Terms Of Use & Disclaimer may change at any time and it is the reader's and user's responsibility to review, understand and abide by any updates.

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MARCH 31, 2012 4:50PM

Jobs Act Removes Limits To Hedge Fund Marketing Put In Place In 1933

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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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One more law to reinforce the rescinding of the Glass-Steagall Act. You say you see light at the end of the tunnel TL, and respect your opinions, but to me it looks like an oncoming train!
I think you are misquoting me. Since starting to blog half a dozen years ago, my downside target for the S&P is 200-450. That's a 90% drop from here. There's not a lot of light either in a post where the hedge fund industry collapses, the investor class loses everything and the S&P effectively goes to zero.

I have said we will fix this mess. But, I have also said it might be horrific beforehand.
TL I was looking for you to say something optimistic. I have always found your posts to be sobering as compared to the doom and gloom of the cessationists.

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?’.


At the same time they were running that I remember reading unverified intelligence estimates that it was about a year and a half away.