For The Time Capsule
Reuters today:
I just read a fantastic book that's relevant here, and I'll try to post about it in the next few days.
Former first daughter Chelsea Clinton has joined Avenue Capital Group, a $12 billion hedge fund manager whose founder has contributed to many Democratic Party campaigns, a person familiar with the matter said on Friday.And this, from a few weeks ago:
Clinton, 26, the only child of former President Bill Clinton and U.S. Sen. Hillary Rodham Clinton, has taken a post at the New York-based fund manager in an undisclosed capacity, the source said.
Clinton, who graduated from Stanford University in 2001 and studied philosophy at Oxford University, most recently worked at consultants McKinsey & Co. from 2003.
Former U.S. Treasury Secretary John Snow was named chairman of private investment firm Cerberus Capital Management LP and Lawrence Summers, another former Treasury chief, will join hedge-fund manager D.E. Shaw & Co.They're not stupid. Like bears perched at the best spot when the salmon are running, they know exactly where to stand: as close to the printing press as possible.
I just read a fantastic book that's relevant here, and I'll try to post about it in the next few days.
posted by The Cunning Realist at Friday, November 03, 2006
14 Comments:
That's disappointing about Chelsea. A damn hedge fund. She's acting like a Republican.
Like it or not Chelsea is of the elite. There is no incentive nor often even a possibility that such a person can participate in the old economy.
The world is awash in liquidity, money and near money, the latter of which consists of various forms of financial assets and their derivatives. Hundreds of billions race around the world daily and in a real sense it is the world economy. The dog of finance is firmly in charge of wagging the dog of real world economic activity. To not partake in it if one has the chance is irrational.
It is slightly embarrasing for her I suppose not to have a job title. If you can't guess what it is I'll tell you. Influence peddler. Door opener. Attracter of funds. Shill.
anonymous #2...why are ur panties in a tizzy?
Chelsa no dumb texas debutante...there is nothing wrong in using capatalism.
Yeah, Chelsea should live a life of charity, martyrdom, and public service just like her paren--
Uhh, maybe a bad example.
"[T]hey know exactly where to stand: as close to the printing press as possible."
Does this refer to the political names who've hired onto hedge funds, or to the people hiring them?
hedge funds are important in market making/price fixing of currencies and stuff...they are sometimes there to sell or pressure assets before the world bank/imf step step in to advise selected countries to put knocked down assets on the chopping block...some may also serve the end of passing on/carrying the derivative risks/liabilities on the books of select blue blooded institutions...
some govts have figured the game out...
http://hermitagefund.com/index.pl/news/article.html?id=846
http://www.mega.nu:8080/ampp/corporate.html
The inflow to hedge funds, nearly $1.5 trillion since 01 closely matches the total tax savings by the top decile from Bush's tax cuts. Concidence? Partly I suppose but the fact is most of that money has gone into conspicuous consumption and speculation, usually called investment to make it sound nicer.
Their role isn't so much in making markets as much as providing a living for the proprieters and someone to trade against by the Pig Men. (Pig Men are the major Wall Street banker/broker/dealers) Hedge funds are also enthsisatic future bag holders of credit swaps and various flavors of modern financial assets and their derivatives.
Perhaps the current flood of liquidity, ie money, cascading thru the financial world can go on for a long long time. Most won't agree but a huge portion of that world is exactly akin to a Ponzi scheme. Such will only be evident to all if liquidity falters. Till then makeing huge leveraged bets with other peoples money like hedge funds do will offer outsized rewards for the insiders.
main thing is control of the means of exchange not so much capital/factors of production...
Appropriate Letter to the Editor I read in more than one NYC newspaper recently (paraphrasing):
'Out of 300,000,000 people, are there only 2 families that qualify for pesidency: Bush 41, Clinton 42, Bush 43, Clinton 44?'
http://www.unobserver.com/layout5.php?id=2772&blz=1
http://www.counterpunch.org/whitney11092006.html
http://www.mises.org/story/2370
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