Deep truths from Clifford Asness, manager of AQR Capital Management, a $20 billion hedge fund, responds to President Obama's complaint that the hedge funds ruined the rescue of Chrysler for refusing to "sacrifice." (HT: Alan Schram) It's a spectacular piece, read the whole thing but here are my favorite parts:
managers, including hedge fund managers, to get their clients the most
return they can. They are allowed to be charitable with their own
money, and many are spectacularly so, but if they give away their
clients’ money to share in the “sacrifice”, they are stealing…
…The President’s attempted diktat takes money from bondholders and gives
it to a labor union that delivers money and votes for him. Why is he
not calling on his party to “sacrifice” some campaign contributions,
and votes, for the greater good? Shaking down lenders for the benefit
of political donors is recycled corruption and abuse of power…
The best part is the ending:
This is America. We have a free enterprise system that has worked
spectacularly for us for two hundred plus years. When it fails it fixes
itself. Most importantly, it is not an owned lackey of the oval office
to be scolded for disobedience by the President.
I am ready for my “personalized” tax rate now.