A friend of mine tipped me to a story that should get everyone thinking. Former CEO of Sovereign Bancorp Jay Sidhu said that he was forced out of his job by "activist investors" who ultimately lead to the demise of Sovereign Bancorp by trying to make as much money as possible for themselves with no concern for the long-term consequences. Regardless of whether you think he's telling the truth about his situation, he does bring up an interesting concept, that of businesspeople giving in to the dark side of capitalism for short-term gains.
From where I sit, the Big Kahuna of activist investors has to be George Soros. Soros is known in political circles as a big donor to Leftist causes, including Media Matters and MoveOn.org. His economic writings tend to also suggest Leftist solutions to economic issues, and people on Wall Street listen to him. But what may not be as known is how intertwined the two are.
Soros emigrated to this country with a healthy disdain for capitalism. After learning economics, he's used his knowledge to advance his wealth at the expense of others. In a move that put Soros on the map, he nearly caused the collapse of the British pound because he sold it short. His actions almost took down the British banking system, and it made him a ton of money.
As the former Soviet Union was struggling with new political and economic freedom, Soros made another play against the ruble. This caused massive economic upheaval (as well as helped his ideological allies who still view communism as pretty nifty), and it made Soros a lot of money. He repeated this pattern in Indonesia with the same results. Soros is so hated in Indonesia that he would be arrested if he sets foot in the country.
And what does he do with all the money he made off his unethical economic practices? He promotes Leftist organizations, while at the same time preaching of the virtues of what he calls an "Open Society." Seems pretty inocuous, right? Once you dig into the concepts of the "Open Society," you'll notice it looks and sounds a lot like communism or socialism. And of the political factions in America, which one do you think would be the most willing to accept millions of dollars as well as the concepts of the "Open Society"?
Three guesses, and the first two are "Democrats."
But you don't have to take my word for it. Research "Open Society" and "George Soros" on your favorite search engine and read Soros's words for yourselves.
Put simply, George Soros is the worst kind of activist investor. The fact he's still highly regarded on Wall Street should give us all pause to think.