Fear Factor: White House Edition

Rory Cooper / May 08, 2009

“…I am indeed fearful writing this. It’s really a bad idea to speak out. Angering the President is a mistake…” What country would you expect to hear a citizen make this statement? Venezuela? Cuba? Russia? Nope, those are the words of prominent hedge fund manager Clifford Asness, who wrote a now-famous and widely circulated open letter this week describing the intimidation techniques used by President Obama and his administration.

Why did the President have to resort to such enhanced techniques of intimidation? Mainly because he was asking financial lenders to engage in the same unscrupulous acts his administration has been engaging in since January, i.e. picking winners and losers without concern for free market principles. The President wanted hedge funds to force a loss on investment onto their unknowing clients, so he could reward supportive union bosses in a “controlled” (i.e. Obama controlled) bankruptcy.

Shamefully, only Mr. Asness spoke up, pointing out five economic basics that the President and his advisors should learn: (more…)