Monday, August 20, 2007

Hedge funds hate taxes, but love big government

A couple months ago, those titans of hypercapitalism, those steely-eyed creators of economic value, were spending all their time arguing that paying income tax like everyone else Just Wasn't Fair.

Now that their Ponzi scheme built on pretending that sub-prime mortgages were safe investments is collapsing, what does Wall Street do?

Sit around and wait for the Fed to intervene. Wow, that's great risk-taking and value-creating behavior, guys.

This kind of hypocrisy makes me sick. Creative capitalism -- the Silicon Valley way -- is as different from this nonsense as night and day.

Update: A NYT article today entitled, "Investors Say That Fed Must Do More to for Markets" contains this great quote from that captain of capitalism, Richard Berner, chief United States economist at Morgan Stanley: “If the money markets are still in disarray a few days from now, I would think the Fed is going to have to take additional steps.”

"Markets in disarray"? I thought markets were perfect?! I thought that markets were efficient?! Can it be true that markets need regulation and intervention? Nah. Couldn't possibly be true.

Funny how when the big bonuses are replaced by the big abyss, all the Wall Street capitalists get religion. Maybe they should pay their taxes, so there's a government to protect them when they need and beg for it.

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