Chrysler Bankruptcy and "Scapegoating" the Investors

Hat tip to CafeHayek

Speaking truth to power

Russell Roberts

Deep truths from Clifford Asness, manager of AQR Capital Management, a $20 billion hedge fund, responds to President Obama's complaint that the hedge funds ruined the rescue of Chrysler for refusing to "sacrifice." (HT: Alan Schram) It's a spectacular piece, read the whole thing but here are my favorite parts:

Let’s be clear, 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...

...The President’s attempted diktat takes money from bondholders and gives it to a labor union that delivers money and votes for him. Why is he not calling on his party to “sacrifice” some campaign contributions, and votes, for the greater good? Shaking down lenders for the benefit of political donors is recycled corruption and abuse of power...

The best part is the ending:

This is America. We have a free enterprise system that has worked spectacularly for us for two hundred plus years. When it fails it fixes itself. Most importantly, it is not an owned lackey of the oval office to be scolded for disobedience by the President.

I am ready for my “personalized” tax rate now.