What hath Barack wrought?

I have been quiet lately because I am working on several projects. I have two new classes for adult education this summer, and am in the early stages of my first book.

Each time something comes along, I see something that I want to blog about, but things come up...

But my background in the financial industry keeps coming back to my mind as we watch President Obama take this ship of state in a hard left turn.

He is killing the goose that laid the golden egg.

No one has EVER said that capitalism is perfect. Or even fair. My dad used to say that over and over, "no one said that life would be fair." We have a president who is trying to use fiscal and monetary policy to effect "fairness and justice." His concept is going to run the ship aground.

His latest move was to demonize Parella Weinberg, a financial group known as a "hedge fund." They also represent people. Imagine that. They invest for pension funds, teacher retirement funds, insurance companies...you know...humans.

Obama is trying to use the executive power of the US Government to bully them out of their proper financial position as first lien holders on Chrysler's debt.

Let me explain: Chrysler comes to you and says, "I need billions of dollars to build new cars."

You reply: "ok, I'm interested, but what happens if you fail and go out of business?"

Chrysler says: "We sell off the company, and you get the first dibs on what's left. It's a risk, but worth taking. And since you would be first in line, your risk is the least, so you get the lowest interest rate of any of our debtors."

You reply: "Ok. Since I would be first in line, I'll buy billions."

Suddenly, Chrysler may go bankrupt. Now, Obama doesn't want this to go to a bankruptcy court, because thay would invalidate the union contracts of Chrysler, and the UAW voted heavily for Obama. He's gonna protect them, so he forces most of the debtors to take @ 50 cents on the dollar. Especially the unions, who are far behind you and your pension funds in line.

YOU, you who had the first position, you get LESS on the dollar,(rumored to be more like 30%). After all, he has been demonizing banks and investment firms since he was inaugurated. And if you DON'T agree to this, his people tell you, "we will trash your reputation in the White House press corps." These are the people who worship Obama and will do his bidding. Heck, media people are one step above baby-killers and lawyers in public polling these days, this will make them popular!

I love how the White House denies this report.

"The charge is completely untrue," said White House deputy press secretary Bill Burton, "and there's obviously no evidence to suggest that this happened in any way."

emphasis mine. Get it? "Can't prove it, pal. Learn to wire yourself for sound, amateur."

Meanwhile, the president goes out and says you weren't willing to "sacrifice" like everyone else was. We elected a president, not a king. This is the US Government, not Cook County, Illinois. You can't rule by intimidation. We have laws, Mr. Obama.

If you think I am making this up, read the links above. What this president is doing is chasing capital out of the country

Even Warren Buffet, who supported and voted for Obama, has warned that inflation and dollar devaluation will be the hidden tax.

Now, there is a very interesting post of a letter from a "hedge-fund" guy to the National Review. I spent enough time in the field to know that this guy is not kidding.

Money has flowed into this country since WWII because it was treated well here. Now, things are changing. All around the world, the warning signs are there for those who pay attention, and our number 1 debtor, CHINA, is paying attention. The demonization of the financial world is the mania of Barack Obama. It's like if you decided to discipline your head by tightening the noose around your neck. The head will get "taught a lesson"...and the body...well...

Here's the note...

Hey (redacted by me) — Would you like a sound bite from one of those evil hedge fund guys for Colmes' show tonight? How's this: "As a professional investor I'd have to be out of my skull to partner with this government on anything."

This administration has made it quite clear that they can't be relied upon to honor contracts or legal precedents and if I can't know what the rules are before the game starts then I'm not going to play. Hedge funds aren't like the banks … we haven't failed. We aren't beholden to the taxpayer to make our way. We have contractual and fiduciary obligation which we will honor. People pay us to make them money not to meet a political goal. So Obama had better think long and hard before he tries to bully us like he did the banks, or try to tell us that "he's the only thing between us and the pitchforks."

Also, Geithner and Obama have been saying that they plan on balancing the budget once the crisis is past. The press may believe that twaddle about how he'll do it by "making things more efficient," but we in the hedge fund industry aren't so stupid. We've looked at the numbers and know what he's planning to do. I know dozens of people who are already putting the legal structures in place to move their companies and themselves offshore and away from the grip of the tax man. These are some of the smartest most dynamic people in the world and they'll have no trouble staying ahead of the (offensive remark removed) over at the IRS.

So unless Obama wants to run out of "other people's money" a lot sooner than he expected, he had better keep some people around to pay the bills. And if he keeps demonizing the productive and saying that it's their responsibility to let him spend their money on the unproductive, then we'll all be gone. I'll be working my 14 hour days is Bahrain or Singapore, and Obama can go suck eggs. He needs the productive classes a lot more than the productive classes need him.

On the plus side, at least my [offspring] will be able to get a decent education.

And if the "smart money" leaves the country, who do you think is gonna be stuck with that huge debt payment long after Mr. "HopeIhavesomechangeleft" has left office?

Us...Mr. and Mrs. Dumbmoney...on the way to being Mr. and Mrs. Debtpayors.

You've been warned.