This is kind of interesting if you think about it: “Mitt Romney’s [portfolio (hedge-fund)] Hit by Mortgage Meltdown”
Walk with me for a moment:
Many of our politicians are very wealthy men and women. As a result, they are often invested in potentially higher-yield, higher-risk investment vehicles–like hedge funds.
If you are not familiar with the nuances of hedge funds I highly recommend Marc Andresseen’s series on “fun with hedge funds.”
Hedge funds are often riding the speculative big waves, like the mortgage market. And like most institutional investors it is hard to get out quick to stop the bleeding.
So, many of these politicians/legislators lost or are losing significant amounts of money.
Meanwhile, they are also entrusted with legislating solutions or even bailing out the current market woes.
Is it for them or for the lenders and borrowers? Seems they are late to that game, but they can steady the mortgage market. Again, for them or the market?
Don’t get me wrong. I am a big free markets guy and believe they generally appropriately correct over time, but sometimes you have to wonder what really motivates action.