Investing Trends

Two hebdomads ago I wrote about what the Securities and Exchange Committee was doing to modulate the common monetary fund industry to assist the small investor, the “poor folks”. It really added up to zero.

Now the second is going to do new ordinances for hedge finances to protect the rich folks. And it is more than window dressing. In fact, it looks downright stupid. When I state rich folks it is because in order to measure up to put in a hedge monetary fund you must have got assets of one million dollars and income of $200,000 per twelvemonth for a single individual and $300,000 for a couple. With this sort of money you can engage an attorney or financial expert to read the hedge monetary fund document. Furthermore, the major investors in hedge finances are not small investors, but pension plans, endowments and universities that are supposed to be administered by professionals.

The second states they desire to set in ordinances to assist forestall fraud. Hey, you guys, what about all the fraud you did NOT happen in the regular common monetary fund industry? They missed multimillions of fraud in standard “poor folks” common finances and now they desire ordinances to protect the rich folks. All this volition make is make more than useless expensive occupations in Washington. Every clip you engage a new authorities worker it is the same as putting more than tax on everyone, rich and poor.

The Senate Banking Committee voted it in by a 3 to 2 commission decision. Three Democrats for and 2 Republicans against. It is the usual progressive Democrat who desires “feel good” statute law that makes no good, but states the public “we care”. Such expensive nonsense.

And how are they going to set this new ordinance into effect? More paperwork without question. The finances would be required to engage a Conformity Officer who would compose out a set of trading processes and a codification of ethics. Because I have got owned a regulated brokerage company I can state you this is a heap of BS. The new conformity officer is paid by management. He is a toothless tiger. And the second will come up to make an on-site audit every 2 to 5 years. Because my company was in Florida they did not demo up until January or February.

What is most interesting is that there were only 46 hedge monetary fund fraud cases during the past 5 old age involving about one billion dollar. In an industry with more than than $800 billion in assets this is a spit. Let the rich folks litigate and don’t load us “poor” taxpayers.

This new ordinance intends nil and is merely a first measure for more than stringent regulations to follow. It is another further cost of doing business and adds to our taxes.