He or his apologists might argue that he is making money for his investors, but a closer look shows that what he is really doing is redistributing wealth according to a distinctly non-socialist principle. The only people who make money, ie who increase the money supply, are governments and banksters, usually the latter. So when in the real world we talk about making money, what we mean is redistributing it. A grocer sells food, and makes money from his customers; a plumber fixes a burst pipe and makes money from a householder or insurance company, but to do so he is performing a service. What service is Mr Harding performing though? If he makes money for his clients, it is at the expense of someone else. If he loses money, it is at the expense of his clients, and of himself, because hedge fund managers invest their own money too, but at the end of the day hedge fund managers, and all other so-called investment managers be their managing unit trusts, pension funds or something else, all they do is buy and sell, producing no goods and no services, but taking their own rake, be it bonus, commission, salary, or usually all three.
[The above blog was first published October 15, 2012.]
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