New SEC Chairman Confirms, "We Know Squat!"

As I mentioned in a previous post, the SEC knows diddely about the hedge fund industry, even though they are convinced that it needs regulating. Now, the incoming Chairman, Christopher Cox, has confirmed this, stating that the upcoming registration requirement will provide "census information about what's going on in the world of hedge funds." So it's true, they know nothing. Nonetheless this data gathering exercise will require tens of millions of dollars of additonal taxpayer money to implement and cost hedge funds tens of millions of dollars. After all this money is spent, the SEC may or may not prevent any fraud. After all, the most recent high profile hedge fund frauds, Bayou and Wood River, were completely missed by people who are in the business of vetting hedge funds (sub. req.) for clients with real money.

I'm not trying to drum up sympathy for the hedge fund business here, just pointing out the mentality behind our regulatory blob. This unknowing intrusiveness goes on throughout our economy and throughout our lives. Have a nice day.