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It was money well spent: Schumer agreed to support a repeal of the rule only if taxes were also raised on things like venture-capital and real-estate partnerships, a stand that guaranteed resistance from enough interest groups to let the hedge funds' special treatment survive unscathed. A million-dollar investment had allowed the hedge fund industry to keep a billion-dollar loophole. Not a bad return.
Originally posted by jam321
reply to post by David9176
I find it difficult to criticize people for becoming wealthy or wealthier as long as their doing it legally.
IMO, they took a gamble and it paid off big time. It is not their fault that the tax liabilities are in their favor.
Congress set the limit(loophole) and as early as february of last year, Obama talked about closing this loophole. Yet, neither Congress nor Congress took serious action.
Levin has several times sponsored a bill to change the tax treatment of investment income earned by private equity, hedge funds and certain other managers. Currently the income is treated as a dividend income, taxed about approximately 15 percent.
Advocates argue that is a huge tax break for the wealthy managers, and their income should face an ordinary tax rate. The top tax rate is now 35 percent.
The bill, backed by President Barack Obama, has passed the House three times but meets fierce lobbying by industry and has never progressed in the Senate, where it faces opposition from some Democrats and most Republicans.
Originally posted by David9176
reply to post by drew hempel
George Soros...he's part of Glen Beck's platform of hate an brings him up CONSTANTLY.
He's number 2 on this list. He's destroyed currencies...he helped bring out the Euro.
But F that...F common sense.
Go watch Fox News, MSNBC, or any other corporate BS network that all of yo buy into and continue to screw yourselves.
Praise the lord for billionares who continue to leech on our standard of living.
LET'S DEFEND THEM. IT'S COOL.
The New York Fed stepped in and arranged a bailout. Almost all of Wall Street's biggest firms participated, and they did so for one reason: The Fed convinced them that LTCM was too big to fail. An uncontrolled bankruptcy might set off a domino effect that could bring down dozens of banks. A few months later, an interagency report concluded, "The near collapse of LTCM illustrates the need for all participants in our financial system, not only hedge funds, to face constraints on the amount of leverage they assume." It was a bipartisan judgment, signed by Fed Chairman Alan Greenspan and by Robert Rubin, Bill Clinton's treasury secretary.
Originally posted by mnemeth1
Oh yeah, as to this "hedge fund managers make money for people so they should make whatever the market pays them" stuff.
For once, I'm with the commie.
The only reason hedge fund managers make such retarded money is because they are doing so at the expense of the tax payer. The major government pension funds and other tax payer entities are what drive the massive funds. If this was all private loot, I wouldn't have a problem with it - but its not.
These managers wouldn't be making the billions they do without government in there pumping them full of tax dollars.
These guys aren't like CEOs that hold stock portfolios. The hedge fund managers get paid no matter if the fund goes up or the fund goes down.
Its a win win for them on the backs of the tax payer.
And, as was already pointed out, they are only paying 15% capital gains on that loot - which is far far faaaaaaaaaaaaarrrrrrrr below what your average burger flipping chump pays in taxes as a portion of his income.
Originally posted by Kaytagg
Business in America, according to Citi Group's leaked "plutonomy" memo, is a "managerial aristocracy," rather than whatever else you think it is.
Say you're working for the commodities desk of a big investment bank, and a major client — a pension fund, perhaps — calls you up and asks you to buy a billion dollars of oil futures for them. Once you place that huge order, the price of those futures is almost guaranteed to go up. If the guy in charge of asset management a few desks down from you somehow finds out about that, he can make a fortune for the bank by betting ahead of that client of yours. The deal would be instantaneous and undetectable, and it would offer huge profits. Your own client would lose money, of course — he'd end up paying a higher price for the oil futures he ordered, because you would have driven up the price. But that doesn't keep banks from screwing their own customers in this very way.
To help them screw their own clients, the major investment banks employ high-speed computer programs that can glimpse orders from investors before the deals are processed and then make trades on behalf of the banks at speeds of fractions of a second. None of them will admit it, but everybody knows what this computerized trading — known as "flash trading" — really is. "Flash trading is nothing more than computerized front-running," says the prominent hedge-fund manager. The SEC voted to ban flash trading in September, but five months later it has yet to issue a regulation to put a stop to the practice.
Originally posted by Zosynspiracy
reply to post by Kaytagg
You're forgetting one minor point..............this "managerial corporate aristocracy" exists due to the US government kleptocracy........i.e. they rob and steal from the people. Bottomline is the US government takes in more revenue than all of corporate enterprise in the United States. Without the US government and their hired goons i..e the legal system, the IRS, the FBI, the DEA, the CIA.......ad nauseum..........wallstreet wouldn't exist in the form that it does. If the US banking system was an honest, transparent one..........operated by the people and for the people............hedge funds wouldn't even exist and these insane amounts of money wouldn't exist. So you're absolutely right...........but kleptocracy allows everything else to happen.
And I love how all of you sit there and act like this "wealth" has any real value these hedge fund managers acquire. It's all on paper. It's not gold sitting in a vault. It's not real estate.......it's not farms, it's not anything but numbers on a computer. And that's how they make their money.
The country I once believed so valiantly in is a joke. America isn't even worth fighting for anymore. We are a bunch of brainwashed little people fighting for the scraps from the slice government and corporate America take from us...........we bow down like good little boys and girls and say thank you mr. government and mr. ceo............thank you for my pathetic existence........thank you for telling me how to crap, when to crap, what to take to crap, what to wipe my arse with, and what to crap in...........
[edit on 1-4-2010 by Zosynspiracy]