Millennials vs. Mutant Capitalism

We don’t call it “mutant capitalism,” we call it crony capitalism. But the main point made in the attached article is vitally important.

What many young people know as “capitalism” is not capitalism. They’ve known only crony capitalism. Many young people have never seen a world in which the economy was allowed to breathe and one where people were generally free to start businesses and carve out a claim while helping fulfill the needs and desires of their fellow humans.

Read More

The Consumer Financial Protection Bureau is ruled unconstitutional

The CFPB is/was housed within the Federal Reserve. The funding for the CFPB comes/came from the Federal Reserve. That’s a problem as Congress is the entity which is to allocate money for such programs.

Read More

Chinese Real Estate Mogul: China’s housing bubble “Is the biggest bubble in history”

Modern China is driven by central planning and a deeply crony culture. Interestingly the country has succeeded in reinflating its housing bubble. I say reinflate because about a year and a half ago things looked like they were really going to bust. (Thanks to the unsound monetary policy that created the initial unstable boom.) Then the government and the banks intervened (in typical central planner fashion) and we’re off to the races again. The government delayed the inevitable. But the debt monster lurks,

Read More

See Imperial Washington Up Close, the Weathiest Metro Area (BY FAR) in the USA —- VIDEO

This is Versailles.

I am extremely fortunate to be able to do what I do for a living. Most of the time I get to write about the news and work on other business projects from my base in the Shire of the Blue Ridge. Broadband is a beautiful thing. But every once in a while I leave the shire and go into Washington DC for meetings.

New Versailles.

I enjoy going believe it or not. There are many interesting and smart people who live and work there.

Read More

Politics at the Fed is the rule, not the exception

Federal Reserve “independence” is a convenient untruth for the Fed and for many in the Washington political class. The Fed is absolutely influenced by politics. This is evident even to the fairly casual observer.

(From The Dallas News)

Carnegie Mellon University’s Allan Meltzer, a distinguished monetary economist, had this to say about Fed policy during the crisis: “Under Mr. Bernanke, the Fed has sacrificed its independence and become the monetary arm of the Treasury.”…

…Bernanke’s Fed seemed to care just as much about the health of prestigious financial houses as the state of the economy.

Read More

As Day In Court Looms, Corzine Tries To Settle MF Global Fraud For Just $5 Million

Ah yes, Mr. Corzine. We haven’t seen much of you these days. Of course we didn’t summer in the Hamptons this year.

$5 million is slightly more than a speed bump for Mr. Corzine. But just barely.

Here’s a little refresher on what happened at MF Global.

(From Zerohedge)

Five years after MF Global’s collapse after big, levered bets on European bonds blew up leaving a $1.6 billion shortfall in customer funds,

Read More

Excerpts of Hillary Clinton’s Paid Speeches to Goldman Sachs Finally Leaked, Trump hit with self inflicted right cross

One particularly remarkable thing about these speeches is that it took Wikileaks to get them out to the public. Clinton gave dozens of speeches after her failed 2008 run and yet no recording or partial recording of these speeches emerged to our knowledge. No one had their phone on? No one?

Regardless the details are out now and they reveal about what many people expected, someone who is very cozy with the banking industry and who seemed to take some pride in the fact that her (mostly) newly amassed wealth (largely from speeches for $200,00+) separated her from the petty middle class.

Read More

Wells Fargo or the Federal Reserve: Who’s the Bigger Fraud?

By Ron Paul

The Wells Fargo bank account scandal took center stage in the news last week and in all likelihood will continue to make headlines for many weeks to come. What Wells Fargo employees did in opening bank accounts without customers’ authorization was obviously wrong, but in true Washington fashion the scandal is being used to deflect attention away from larger, more enduring, and more important scandals.

Read More

Alan Greenspan knew the dangers of Fed manipulation, but he let the bubbles bubble to win political favor (and get reappointed)

We have said before that no Fed Chair was ever “free market.” This absolutely includes Mr. Greenspan. His legacy is one of a price fixer, an economic manipulator, a bubble blower, and ultimately one who in many ways ushered in the crony era we live in today.

But as we see in the attached piece from Sebastian Mallaby, Allan Greenspan, the one time “Maestro,” knew better all along. He knew that Fed policy could and typically did destabilize the real economy.

Read More

The Fed’s Monetary Politburo Is Finally Catching Some Flack

One of the reasons I so enjoy Ron Paul (and there are many reasons) is because he raised the Federal Reserve as an issue in the eyes of the public. The Fed would have been very pleased to stay just as it was, a collection of supposed economic wizards gathered around the monetary cauldron in the Eccles Building. Obscured from view. In the shadows, where the “secrets of the temple” were shared with a select few and in hushed and important tones.

Read More

While America worries about Trillary, Germany preparing Deutsche Bank bailout plan, reports claim

Yes, yes, everything is fine economically. So what if the largest FOREX trader in the world and the globe’s 11th largest bank is teetering because after all this time the DOJ in America finally decided to levy a fine of consequence against a major bank.

My question is why is the US trying to break Deutsche Bank? If it wrote fraudulent mortgages and packaged fraudulent mortgage backed securities it deserves to feel pain. But other banks got off with wrist slaps.

Read More

I called the Wells Fargo ethics line and was fired (Where is Warren Buffett, who controls 10% of Wells Fargo, on this?)

Image: AP

Wells Fargo is Warren Buffett’s bank. (He holds 10% of it.)

Wells thought it could weather the current fraud storm just by firing a bunch of underlings. But the underlings weren’t the ones who developed and encouraged the fraudulent policy of charging clients for “ghost accounts.” It was company leadership.

Seems this sort of thing is (supposedly) anathema to Warren’s down homey philosophy of finance. One would think he’d want to weigh in and set shareholders,

Read More

Central Banks May Choose Helicopter Money Over Negative Rates

Here comes the Fed…Hooray.

The definition of “helicopter money” appears to be shifting a bit. Generally it means pouring currency (printed by a central bank) into the economic system by directly depositing it into accounts. What type of accounts appears to be an open question. Whatever the Fed chooses (assuming that it does) it is a bad idea however.

How about we let rates adjust to where they should be naturally? How about we let things clear. How about we get real now,

Read More

The Obama legacy: An economy choking on red tape

Obama does not get business. He is a product of prep-school and then found his way into Columbia and Harvard. Then he became a “community organizer” in the Saul Alinsky tradition in Chicago. Then he became a politician. He hasn’t spent any time in the world in which most Americans live.

Indeed Obama has been downright hostile to commerce and the private sector since the beginning of his presidency. Remember the “you didn’t build that

Read More