It should be clearly stated that the US has been one of the most ardent proponents (together with the UK) of preventing regulatory oversight of Hedge Funds in any form.

I think there NUST be a renewed public debate why NOT regulating Hedge Funds is considered a good and appropriate government policy?

Probably the past policies have been driven partly by influential figures like the ex Nasdaq boss? What was his Name? Madoff?

In our own case, in addition to managing assets for clients, we provide fee-based investment coaching for those clients who prefer to maintain direct control of their assets.

We do agree with the perspective that commission motivated advisors are conflicted and not well aligned with the interests of their clients.

Now they want their capital back, as well? Wall Street types always tells you, when you ask too many questions, too close to the bone: if you can’t afford to lose it, you shouldn’t be putting in the market. Or you’d better know that the best time to pull your chips out of the game is not in the midst of a world-wide financial collapse.

It is clear the entire financial services industry is under regulated. We have systematically cut to the bone state and federal budgets and all but undermined the SEC, FRB, OCC, etc. From someone who is in regular contact with these entities, they lack the modern business model understanding, the focus, the concrete regulation (”guidance” should be erased from the vocabulary), the pockets, and the systems to combat the core problem. I am all for free markets, but today’s level of oversight is grossly dated and misguided.

I have a different set of questions:
pretty much the same questions you ask a potential contractor to work on your house.

are you licensed; how long have you been licensed?
have you ever done this before?
How many times/how long/when?
Are you insured?
Do you do the work or do you hire somebody else to do it?
have you ever been sued?
has anyone ever taken you to court? filed a complaint?
are you being sued at the moment?

We agree on exactly what you’re going to do. You ask me before you make any changes.

Talk to at least 3 different ‘contractors’. I usually ask for references.

For financial advisors:
Where are you putting it?
How do you get paid?
Do I pay you if I lose money? (nothing like paying someone to lose money for you)
How many clients do you have?
How much money are you managing?
How long have you been doing it (in business)?

You may not get complete anwers to those questions, but you have to be comfortable with the answers. In the end, it’s your roof; you’d like it to keep you dry when it rains.

Their will be a lack of trust in the financial system not only from Americans here in the US but from investors worldwide not only because of the ponzi scheme but the toxic mortgages being dumped overseas. One day foreign capital will cease to flow to US like it does in corrupt countries right now. This will really mark the demise of the US and the financial problems faced right now by the US will be nothing compared to what would happen if “trust” of the financial systems were to break down even further.

Those that created the programs so be sent to jail not those that were just doing their job by following them. The senior managements and board of directors of the banks should be the ones to pay for the messes. The government should take out from their paycheck and confiscate their assets until full payment is made. Let them feel some pain for putting millions out of work, out of homes.