What a pair these two make! Obama is dabbling in facism, and Joe Biden’s family is mixed up in hedge fund scam/ponzi scheme.
You will not find the mainstream media focusing on these topics. Yet, it’s important for investors to keep an eye on these developments because they can have a profound impact on market sentiment. In fact, we believe the seeds are being sown for a major political turmoil, which can negatively effect stock prices, while pushing gold prices through the roof.
First, the latest on Joe Biden Hedge fund scam.
Joe Biden is a pompous, and not-too bright, buffoon and we wonder just how “arms length” he is from this…
Zero Hedge Expose of Biden “Ponzi Scheme”
Washington Post on the Biden Hedge Fund Scam
Side note: Why is it that Democrat politicians are always getting mixed up in financial scams, while Republican politicians tend to get caught in gay sex scandals?
Comrade Obama Starts Dictating how Americans should be paid. Kenya’s pride and joy knows what’s “fair” and good for you.
Barrack Hussein Obama has alot in common with another great leader of the 20th century: Adolph Hitler.
Both were best-selling authors.
Both gave great speeches.
Both used great logos, and branding.
Both promised “change” and appealed to youth movements, and “volunteerism”
Both had zero “real world” experience before becoming leaders of their country.
Is it irony that the crowds at the Brandendburg Gate in Berlin went wild for Obama, just like they did for Hitler not too long ago?
Obama’s meddling with free market capitalism surely has Washington and Jefferson spinning in their graves.
AQR Capital founder Clifford S. Asness is “aghast” at President Barack Obama’s comments criticizing the hedge funds that are battling the government’s proposed reorganization of Chrysler. He calls the comments “backwards” and “libelous.”
The $20 billion Greenwich hedge fund group isn’t involved in the Chrysler situation, but in a two-and-a-half page letter sent Sunday night, Asness throws support behind the dissident hedge funds that are calling themselves Chrysler’s non-TARP creditors.
The group, which argued Tuesday that its members be kept anonymous to all but the bankruptcy court judge in New York, were told they had to identify themselves by mid-morning Wednesday. Lawyers for the hedge funds say the group’s members have been vilified on message boards and called greedy speculators, criminals and vultures. Obama said last week he “does not stand with them.” They have received death threats.
Critics of the government’s plan to reorganize Chrysler say it rewards junior debt holders at the expense of senior secured creditors, some of which have agreed to take 30 cents on the dollar for their investment. Senior creditors that have agreed to the plan include the big banks JPMorgan Chase ( JPM – news – people ), Citigroup ( C – news – people ), Goldman Sachs ( GS – news – people ) and Morgan Stanley ( MS – news – people ), all recipients of tens of billions of dollars from the Treasury’s Troubled Asset Relief Program. In other words, the government already has its hooks in them.
The non-TARP creditors wanted 60 cents on the dollar. They have been criticized as greedy holdouts, with the Obama administration insinuating they are acting less than patriotically.
Asness of AQR Capital (who says he is speaking for himself and not his company) says the hedge funds are acting as they should act. “It is the job and obligation of all investment 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,” he says in the letter.
Obama’s plan, Asness contends, is essentially taking money from bondholders and transferring it to the United Auto Workers. Under the sale plan for Chrysler, a UAW health-care trust will receive a 55% stake in the bankrupt automaker (though no voting role on the board), while Italy’s Fiat ( FIA – news – people ) will take control with a 20% stake. Labor unions supported Obama. “Shaking down lenders for the benefit of political donors is recycled corruption and abuse of power,” he says.
Hedge funds haven’t received a bailout, Asness notes, and haven’t asked for one. “The hedge funds were singled out only because they are unpopular, not because they behaved any differently from any other ethical manager of other people’s money.”
Asness ends the letter by acknowledging the personal risks he takes by speaking out. “I am ready for my ‘personalized’ tax rate now.”
The Economist covers the story:
In its rush to save Detroit, the American government is trashing creditors’ rights
…The many creditors who have acquiesced include banks that themselves rely on the government’s purse. The objectors have been denounced as “speculators” by Barack Obama.
When a government starts using “Speculators” in the pejorative, you better watch out.
This is something straight out of the Joseph Stalin playbook. Is Kenyan-born Barrack Hussein Obama even eligible to be President of the United States? No, according to former Deputy Attorney General of Pennsylvania, Phillip Berg.