Barak Obama, if he is elected, has a Robin-Hood economic plan – tax the “rich” and reward the “poor.” Unfortunately for his election prospects, such wealth redistribution is now taking place in clubs (I can’t say that other word). Hedge funds, the piggy banks of the plutocrats, have, over the last few months, taken multiple financial hits:
- First, the bursting of the oil and other commodities bubbles
- Second, the freeze-up of financial liquidity brought about by the sub-prime mortgage fiasco
- Thirdly, the blood bath on Wall Street due to the failures of Bear Sterns and Lehman Brothers (and, to a lesser extent, Merrill Lynch) and the bailouts of Fannie Mae, AIG, and Freddie Mac
- Fourthly, the world-wide dramatic deflation of emerging-economy equity markets – particularly China and Russia
- Fifthly, the current run on the money market funds to the extent that they needed to be backstopped by the U.S. Treasury
- And possibly others to come
It is the lucky nabob who has navigated these treacherous times with his/her fortune intact. Therefore, Barak’s social-engineering economic promises have become somewhat moot. Come his prospective January inauguration, it is unlikely that there will be an extra penny in the U.S. Treasury for Obama to buy a populist’s vote for his second-term run. He will be lucky if we can pay for Michelle’s redecorating of the White House (as all First Ladies seem prone to do.)
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2 comments:
Are you are saying that there wont be any rich people left to tax?
Hah! The nabobs were playing with monopoly money, there is plenty of fat left on those bones.
Maybe President Obama will nationalize the bank accounts of the ones who f**ked-up the economy. Bring back the guillotine.
If the old white guy gets elected, will he be cool with my trust fund money?
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