Skip to comments.Political bullies and faith (If you own Mutual Funds, you are investing in outsourcing)
Posted on 10/23/2012 4:43:34 AM PDT by SeekAndFind
One of the most delicious moments in last weeks presidential debates was when President Obama attacked Mitt Romney for having some of his money invested in Chinese and Cayman Islands companies. Mr. Romney replied by noting that the president has some of his investments in Chinese companies and also has investments through a Cayman trust. The president indeed, through funds he holds, has invested in a private equity and buyout firm (that operates like Bain Capital) that has put money into Chinese equities and Cayman Islands partnerships.
Most everyone who has investments in mutual funds is very likely to have some of the investments in companies registered outside the United States. We have a global market for capital, and investment managers who are fulfilling their fiduciary responsibility in trying to minimize risk for their clients and maximize returns will invest globally. Both Mr. Obama and Mr. Romney have their money in blind trusts, so they have no direct control over those funds.
There is nothing wrong with how the president and the former Massachusetts governor are protecting their savings and, in fact, are contributing to global prosperity. It is more likely that fund managers who are allocating money to what they see as its highest and best use are creating many more jobs than would occur if government bureaucrats were allocating the money remember Solyndra and the other disastrous government investments.
The economic know-nothings in the press and the tax bullies in Congress have spent decades unfairly tarnishing the image of offshore financial centers such as the Cayman Islands and Switzerland. The fact is that investments made through corporations and trusts in Delaware (home of Vice President Joseph R. Biden) and Nevada (home of Senate Majority Leader Harry Reid) are far less transparent than are most investments made
(Excerpt) Read more at washingtontimes.com ...