Top Republican defends hedge fund managers by claiming they are small businesses


Eric Cantor keeps fucking up.  The Republican minority whip attacked the proposed tax hike for hedge funds from the Obama Administration Friday and his answer started out just fine.  Then it went terribly awry.  Here is the video:

For those who can’t watch the video, here is a transcription:

Reporter: Given your concern about the fiscal and aslo the public’s concern about executive compensation recently, I’m wondering if you will support the President’s proposal to increase the tax on hedge fund managers above the 15% that they currently are taxed on most of their income.

Cantor:  Listen, I haven’t seen his proposal in detail but I can tell you.  Any attempt to put disincentives in place for capital formation is the wrong direction to go in.   We need investors back into the game to create jobs.  This is about small business, really.  The engine for jobs in this country comes from small businesses and entrepreneurs.

This group, the economic working group, had a small business forum last week.  We heard from small business people from around the country.  And the one thing they said right now [is that] times are tough.  And when times are tough it means your customers are not walking through the door as quickly or with as many orders.  And right now they need access to credit and credit lines to get them through the tough times.  If we are going to put disincentives in place for the banking system to function again, we are cutting off the lifeblood of small business.  That’s not the way to go.

Oh damn! He should have stopped sooner.  Instead he goes into some populist bullshit about how it’s really about small businesses.  Really, Cantor?  Do you know what a hedge fund is?  A small businesses gets nothing from a hedge fund unless they happen to be in George Soros’ charity Rolodex.  Hedge funds are speculators that short sell like no one’s business.  They make wagers in the derivatives market and reinvest capital.

Let me make a quick aside to further my point.  George Soros is fucking rich.  Forbes ranked him as the 29th richest person in the world with a net worth of $11 billion.  Soros is a hedge fund manager and a Democrat.  He is currently making a shit ton of money off of the economic crisis.

Do you want to know why?  Because he bet that the housing market would burst.  But all of that betting is just talk and an exchange of money by huge corporations.  One corporation says that they think Person A will be able to pay their subprime mortgage.  George Soros says that Person A won’t be able to pay their subprime mortgage.  Neither institution actually holds the debt for Person A.  They are simply betting on the outcome of the loan.  When the bubble burst, Soros cleaned up with his bets.

Im richer than your entire city.

George Soros is shocked and appalled and enormously wealthy from the economic crisis.

George Soros does have a few people working under him.  But the bets he makes and the bets other hedge fund managers make have no effect on the day to day activities of the average American.  Hedge funds do not loan people money, they do not create a huge number of jobs, and they don’t even allow more than a handful of people into their exclusive clubs.

Eric Cantor is betting that you don’t know all of that.  The second half of his answer is a goddamn joke.

RWP Rating: Unusual


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2 Responses to “Top Republican defends hedge fund managers by claiming they are small businesses”

  1. Brian Barker Says:

    Did you know that George Soros would not be a multi-billionaire if it were not for the international language Esperanto?

    Born in Hungary in 1930 as Gyorgy Schwartz, the family changed its name in 1936 to Soros, which in Esperanto means “to soar.”

    The Soros name-change was an effort to protect the Jewish family from the rise of fascist rulers and the whole family spoke Esperanto at home.

    As a native Esperanto speaker, (someone who has spoken Esperanto from birth), George Soros defected to the West in 1946, while attending an Esperanto youth meeting in Switzerland.

    Esperanto enabled Soros both to defect, and to become the 28th most wealthy man in the World, according to the Forbes rich list.

    • Joel Lightly Says:

      I’m pretty sure it has fuck-all to do with his ability to speak Esperanto. It has everything to do with being a keen speculator.

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