When the real estate bubble burst, and the extent of the subprime lending mess was revealed, millions of people lost money. Some have lost their homes; many more have seen their investments — and their homes — decline in value.

But while the subprime financial crisis hurt many people, a few who saw the crisis coming made money — lots of money.

Last week, it was reported that some hedge fund managers who bet against the risky mortgage securities have made billions of dollars in the current financial crisis. The top money-maker, hedge fund founder John Paulson, made $3.7 billion last year. George Soros, a high-profile hedge fund manager who is well-known for his political involvement, made $3 billion. As a group, the people heading up the top 50 hedge funds made $29 billion last year.

This recent report from the New York Times is a reminder of a similar news story that broke last summer when it was learned that the CEO of the Blackstone Group private equity firm was paid $396 million in 2006.

News about the Blackstone CEO's pay was accompanied by reports that a preferential tax treatment allowed that $396 million compensation to be taxed at just 15 percent, the rate for capital gains, instead of the 35 percent rate applied to regular income at that high level.

The tax-loophole story caused quite a stir in Congress. Leading politicians made impassioned speeches about the unfairness of a few Wall Street tycoons enjoying tax rates that were lower than the tax rates paid by their secretaries.

It's important to remember that this issue concerns tax rates, not total dollars paid in taxes.

The same indignation that fueled the speeches then is found in one of Sen. HillaryClinton's campaign speeches. In recent months, Clinton has made campaign promises that she will restore a "fair tax system" and close loopholes for hedge fund managers.

But last summer, after the politicians made their speeches about their outrage at the tax loophole, the Wall Street beneficiaries of that loophole opened their wallets wider to make campaign contributions and hire high-priced lobbyists. By fall, Senate Majority Leader Harry Reid, D-Nev., had quietly told the elites of the investment world that the Senate schedule was too crowded to accommodate any legislation that would threaten their tax break.

Reid further suggested to his party's supporters on Wall Street that 2008, because it is a presidential election year, would not be a good time to introduce such legislation, so their tax break would remain.

Given that example, claims by Clinton — and any other politician whose campaign is funded by contributions from hedge funds or private equity firms on WallStreet — might vanish like so many other campaign promises.

The cause for concern is found in campaign finance reports that reveal that the Wall Street investment community has heavily backed Clinton and other Democrats. Clinton's close ties to the elite of the investment world might be natural, since as a New York senator she represents New York City, home to a majority of the big investment firms. But the money connection — and its potential for influence — is impossible to overlook.

Mother Jones magazine reported that 75 percent of the $1.1 million of the political contributions made in a recent three-month period by hedge fund managers went to Democrats.

The Associated Press has reported that 40 top executives from hedge funds and private equity firms have contributed about $6 million to the Clinton campaign and to the campaign of her Democratic rival, Sen. Barack Obama.

The loosely regulated and oftentimes secretive hedge funds and private equity firms also hedged their bets by spending $5.5 million on lobbyists to convince Congress to leave their tax loophole alone.

Clinton and other politicians might be sincere when they promise to change the apparent unfairness of giving billionaires a tax loophole that allows them to pay taxes at a lower rate than the vast majority of Americans. Or, it could be just a calculated effort to tell voters whatever they want to hear in order to get elected.

Regardless of the intent, voters should be suspicious, given how much money these Wall Street financiers have given to the leading candidates. As always, it's useful to "follow the money."

Given their track record, hedge fund managers and private equity executives know a good bet when they see one. Their stepped-up campaign contributions reveal they are willing to spend tens of millions of dollars to protect their billion-dollar tax loophole.

Time will tell if those bets will pay off.