Equal Access

I simply do not understand why one has to be accredited to invest in hedge funds.
If someone has the willingness to bear the risk why should they not be allowed to participate in Hedge Funds? Why should anyone care how fast my 100 dollars can grow?

Lottery tickets highest and casino do not have a litmus test as to who can participate. Hedge funds are much better speculative instruments than these two.

We can agree the core intent is not all that evil just a poor implementation. The constraint should be placed in a different dimension. Access to hedge funds must be open to all -- with a single restriction -- one cannot bet more than 10% of networth. May be 5%.

Government can exercise better regulatory powers by insisting that every one follow Credit Suisse model of compensation. Bonus is placed into an account with a vesting scheme at CS. Imagine if Bear employees bonus from the last 3 years had been placed into a vesting scheme, the employess could have bailed out Bear on their own.

All of this stifles the average guy. This is not the only instance. Think of the public company bankruptcies all of us have suffered through. In my own investment history I have made several poor choices including ATHM, Win Dixie, Calpine etc. Not sure what happend to ATHM.
I was told I should bear the risk. Risk vs Reward is the foundation of modern finance and free market system. My shares became worthless. But Win Dixie relisted. Calpine was a little fairer -- in that I was given warrants --.

Not quite. Not if you are Savings and Loan Association of 80s, Long Term Capital of the 90s and
Bear Stearns (really JPM) of recent days. Government steps in and bails the risk takers out.

I am in agreement with George Soros. Once again my respect and adoration for this immigrant and his audacious pursuit in life has grown. More power to George Soros!