Janet T Takes On "But It's Just Sex!" in [Market-Ticker]

Posted 2012-06-12 09:47
by Karl Denninger
in Other Voices

Janet T Takes On "But It's Just Sex!"

I can't argue with the logic (which is usually the case when it comes to Janet ;-))

When performing due diligence, investors consider capacity, capital, and character. Investors will develop a subjective opinion of character informed by their own standards and those of the society in which they live.

Oh, the three "Cs"? I thought that was dead and buried in the 2000s Janet? You mean it still matters? smiley

Some hedge fund managers feel they are above appearances, if not the law. Some investors believe prostitution isn’t a big deal, too. But there’s a large cohort of investors that won’t go near a hedge fund manager with a reputation for using prostitutes.
What else could go wrong? If a prostitute is in a hedge fund manager’s apartment when he’s not home, what is she doing? Who else is she letting in? Does she have friends who are good at hacking computers? What if the hedge fund manager gets caught up in a legal sting? That could distract him from fund management for a while. Investors have a tough enough job performing due diligence without these potential problems.

Good point.

After all, at least in most parts of the United States prostitution (for both the seller and buyer) is illegal. So is insider trading, incidentally, along with a whole host of other things.

And we don't know of any hedge funds that have gotten caught doing any of those other things lately, do we? Oh wait....

See, this is the problem -- you can personally disagree with the law barring prostitution. I can make a very cogent argument that the law is wrong -- that it actually causes harm, because it drives the behavior underground, provides fuel for the "pimping" of women (which can and often does amount to slavery rather than consensual contractual behavior) and in addition tends to provide "extra vig" that is then exploited by various criminal elements that are all about violence and coercion instead of contracts for service.

But the fact remains that if you're willing to break one law you might be willing to break other laws -- including laws that screw people in a non-sexual way.

Is this a fair evaluation?

You bet it is.

Discussion below (registration required to post)

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User Info	Janet T Takes On "But It's Just Sex!" in forum [Market-Ticker]
Curbyourrisk Posts: 3595 Incept: 2008-08-19 Farmingdale, NY	Is Janet married? Seems like you and her have A LOT on common Karl. ---------- Time is up. I hate to burst your bubble, but there is no Santa Claus, the tooth fairy does not exist and American justice does not involve the courts. 2012-06-12 11:36:37 Permalink
Mannfm11 Posts: 3551 Incept: 2009-02-28 DFW, Tx	Seems to me like prostitutes are a lot more honest and legitimate than much of the other promiscuous sex that goes on out there. There are consenting adults and then there are a lot of games going on that if the truth were known, neither party would consent to. It isn't about what the hooker would do with the hedgies computer. it is more what the hedgie is up to in the first place. Stringing 4 or 5 mates along at the same time, affairs in marriage and other dishonesty is generally revealed in other areas of life. This is also a boundary issue, where a persons personal space ends and another begins, which leads to where a persons stack of chips ends and another begins. Lastly, it is risky behavior and the number one characteristic of a trader should be his evaluation of risk. ---------- The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith 2012-06-12 12:10:56 Permalink
Noodleman Posts: 2393 Incept: 2008-11-01	At least with a *** when you cough up the cash you know what's coming. That's something you usually can't say about a politician or a hedge fund manager. Of the three - **s are generally more trustworthy and moral. ---------- "Ammunition beats persuasion when you are looking for freedom." Will Rogers, 4 Nov 1879 - 15 Aug 1935 2012-06-12 12:35:13 Permalink*
Steelhead23 Posts: 2043 Incept: 2008-09-09 Portland OR	Look, if my broker made me $1000 each and every morning, I frankly couldn't care less what he did with his evenings. ---------- "Give me control of a nation's money and I care not who makes it's laws" ~~Mayer Amschel Bauer Rothschild~~ Benjamin Bernanke For-profit commercial banks are a menace and should be eradicated 2012-06-12 13:19:10 Permalink
Genesis Posts: 130792 Incept: 2007-06-26	What if he stole it? ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2012-06-12 13:22:59 From PDA Permalink
Curbyourrisk Posts: 3595 Incept: 2008-08-19 Farmingdale, NY	Steelhead, what if he was commingling those funds in the evening and betting them on EURO TRASH? ---------- Time is up. I hate to burst your bubble, but there is no Santa Claus, the tooth fairy does not exist and American justice does not involve the courts. 2012-06-12 15:30:41 Permalink
Aethor Posts: 132 Incept: 2011-11-15	Bernie Madoff made a lot of people a lot of money each and every morning... until the moment of truth. 2012-06-12 16:49:45 Permalink
Steelhead23 Posts: 2043 Incept: 2008-09-09 Portland OR	I get it - if my broker is doing dastardly deeds during the night it might just be an indication that he has low morals as regards other people's money. I can just imagine MF Global customers getting really exciting monthly statements - until around October 2011. Point taken. ---------- "Give me control of a nation's money and I care not who makes it's laws" ~~Mayer Amschel Bauer Rothschild~~ Benjamin Bernanke For-profit commercial banks are a menace and should be eradicated 2012-06-12 18:31:02 Permalink
Morla Posts: 817 Incept: 2009-11-09	Janet gave money to both Mccain and Obama in 2008, and even voted for one of them.. so in 2008 she was still clueless about political and economic reality. I admit to having committed equally ignorant acts as recently as 2004, so I'll give her the benefit of the doubt and assume she's learned something over the last 4 years. After all, ignorance can be cured almost overnight once the problem has been identified. As for hedge fund managers seeing prostitutes, unless they just woke up this morning and decided to pick up the habit I'd say this behavior is already baked into their performance.. Quote: But the fact remains that if you're willing to break one law you might be willing to break other laws If the law that was broken is an unjust law I wouldn't read that far into it. I have much more respect for one who commits victimless "crimes" than one who legally cheats people. ---------- Fear of govt IS the government.. Statism is a pack of unbacked threats; If govt gets out of control, ignore it and go about life as you see fit. Where's your crown, King Nothing? 2012-06-12 23:33:58 Permalink
Schwantz Posts: 5820 Incept: 2007-11-12 Toronto Online	The real question is why any nice self respecting ***** would co-mingle with a hedge fund manager. Ewww...talk about disgusting. ---------- When the system is corrupt absolutely you must seek representation by those who are absolutely incorruptible. 2012-06-12 23:36:05 Permalink
Nomullet Posts: 6825 Incept: 2007-11-11 SW	Paying a ***** is more honest than dating ---------- Don't confuse clear thinking with simplistic thinking. --Nomullet 2012-06-12 23:43:17 Permalink

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