Hedge Funds and the WSJ

In an interesting article, the Wall Street Journal describes the change in political contributions from the hedge fund industry. In 2008, Obama and the Obamacrats got the bulk of contributions from that industry. In 2010, the GOP took the lion's share of the contributions. The Journal then describes the reason for this switch this way: "Managers of hedge funds—private investment partnerships that cater to institutions and wealthy people—are reacting to what some criticize as Mr. Obama's populist attacks on Wall Street, as well as to Democrat-led efforts to raise their tax bills. They had hoped to be protected from such a tax move by their relationships with prominent Democratic members of Congress. 'Hedge funds bankrolled the Democrats in the 2006 and 2008 elections, and the very people they helped put in power turned around and screwed them,' said Sam Geduldig, a former Republican congressional staffer who is a Wall Street lobbyist."

This seems too simplistic by far to me. Sure, there are undoubtedly hedgies who are angered by the attacks of the president on them and their industry. There are also certainly others who resent the push by Obama and his party to raise taxes on their industry. Nevertheless, it would be foolish not to realize that the hedge fund industry contains a big chunk of people who actually understand economics and how it works. They are not taken in by class warfare rhetoric that calls for certain types of spending or taxes even though the results will harm the economy. They are lookinig for policies that will actually help the US economy, something Obama has not ever provided. The WSJ should realize that not everyone acts out of just their own self interest. Many folks try to do what will be best for the country. Certainly, that would mean the rejection of Obama and the Obamacrats who have done much to undermine the US economy over the last two years.