I get it! The madness behind the Hedge Funds. [View All]

It's five o'clock eastern time and my head pops up from the pillow, the fluff clouds from a fading dream still lingering over my head, (I think there was a dog and a meadow involved,) anyway I wake up and I say, "I get it! They privatized taxes!"

I thought it was peculiar that so many powerful and good names were associated with Hedge Funds these days: John Edwards and Chelsea Clinton to name a few. These aren't people you usually associate with Wall Street greed. These are people who, if there was a way to help out the less fortunate, you know they would do it. Then it dawned on me that all of their interactions with Hedge Funds has occurred, roughly since 1998, but primarily during Bush II's term.

The Congress by 1998, was definitely Republican and even in 1996 was powerful enough to override a veto from Bill Clinton that would have made CEOs accountable to stock holders (So now you know who sowed the seeds for the irresponsible, reckless capitalism we're dealing with today. Free market my ass. But I digress...)

Anyway, it dawned on me that someone out there convinced all these incredibly wealthy people to put millions and millions of dollars into accounts, that basically, were meant to provide loans to poor people. Now, two things are at play. First, how do you get someone to put 10 million dollars of their own money into an account AND get the government to look the other way while you're doing it? You obviously sell the premise to the government that they DON'T HAVE TO RAISE TAXES, because, instead, they can lure incredibly rich people to WILLINGLY INVEST the money AND MORE into an account that will be used to help poor people afford homes.

And buying a home has been assigned as the official American Dream. Physically buying the home is the dream; not living and raising our children in a good community - just actually owning property. Well, that and owning your own small business. If you dream about something that doesn't make money to buy a house, you're really screwed, but I digress, again. Hey, it's five in the morning, I'm allowed.

So that would explain everything. That would explain why we're not seeing tax increases during a time of war. George Bush and his chaos capitalist creeps have tempted the money in this country by promising them that their concept of trickle down economics works. That's what the hedge funds are all about. Trickle down economics with a high rate of return, AND GOVERNMENT PROTECTION.

That's why they were bailed out. That's what Cramer's meltdown was all about. All these millionaires were about to find out that George Bush's Wall Street buddies were wrong.

So, the privatized taxes scheme didn't work. It was a another Republican gimmick of socialized risk and privatized profit.

Why it failed is why it always fails. Inflation caught up with them. In order to keep making the profits, they have to have secure loans. That means that money had to be loaned to people who were secure risks, so this was not just an effort to help the poor, it became an opportunity for anyone willing to bargain they can buy a house and sell it before the crash came in. But, just as they had bogus home buyers, they also had bogus Hedge Fund investment money, because, from what I understand, you could get in on credit.

What a slimey mess.