Contributors

Tuesday, December 21, 2010

Shh (2 of 20)

Continuing on with examples of how the wealthy in this country have more advantages to grow their worth and attain more power, we have the hedge fund.

Hedge funds, which are also restricted to accredited investors, use a variety of often complex strategies, such as high-tech, proprietary trading platforms that buy and sell stocks in milliseconds. There were more than 8,000 hedge funds at the end of 2009, according to Hedge Fund Research.


Something else to note as well. Hedge funds are not obligated to disclose their activities to third parties. In addition to being very under regulated, hedge fund disclosure is not available to the non investor. Even to investors, they have very limited transparency and this is how someone like Madoff was able to run (an actual as opposed to make believe) Ponzi Scheme.

So, hedge funds are another example of something that is offered only to the very wealthy which further cements their ability to maintain power over the rest of us.

5 comments:

6Kings said...

If there is little transparency and high risk, why would you even want in on that? AND why would you care if non-investors can't see into an investment? It isn't your business if you aren't putting in money.

Damn Teabaggers said...

And once again the fact that US law allows access to this to only the very wealthy is the fault of the wealthy, not of those who make, adjudicate or enforce the law, right?

juris imprudent said...

In addition to being very under regulated, hedge fund disclosure is not available to the non investor.

You, a third party non investor, are not privvy to any information about my investments either. So what exact point are you driving at here?

which further cements their ability to maintain power over the rest of us

What power? What has the bad hedge fund investor done to you M? Can you show us on the doll?

GuardDuck said...

Oh, they're under regulated because they are so regulated that only a fraction of the populace has access to them.

Wait, what?

Anonymous said...

Sweet Jebus, do I have to waste my monitor's photons on 18 more of these? Skip down the list to an example that involves the filthy Wall St. Fat Cats breaking a law and not facing prosecution.

If you continue to show that the rich use LAWS to get their way, but refuse to admit the source of those laws as government, you can just cut-n-paste the comments.

dw