These guys never stop. I respect that about JP (in the way that I respect the Empire in Star Wars) and there is something to be said for an idea so disruptive that it attracts the sharks at JP.
I liked GE so much better when all I thought they made was light bulbs.
Recently I wrote a piece entitled Boycott Back Friday. Generally it was well received. Being fans of capitalism and the voluntary exchange of goods and services we made the point that it was entirely reasonable to opt out of the buying frenzy from a pro-market perspective. To value time (time is money) with one’s family and more than standing in line to buy things is the very essence of what a free market is all about.
This isn’t a surprise. There is no way she would have been considered for the top job at the Fed had she been for an audit.
But we must keep the pressure on and we are thankful that Senator Vitter raised the issue.
The New York Times reports that JP Morgan hired the sons and daughters of high level Chinese officials in order to buy access and to generally curry favor in the land of the Red Dragon.
I just can’t believe it. There’s shadiness, outright corruption in the Chinese banking system?
I’m not kidding. The guy who was in charge of a big part of the Fed’s quantitative easing efforts in 2009, Andrew Huzar, explains that all the money printing, the exploding of the Fed’s balance sheet, all the central bank sleight of hand has hurt this country, and the world.
Politicians love to give government employees lavish pay and pension packages. It’s so easy to do. With a strike of a pen he or she can keep a key political ally happy. If the government workers are satiated life is usually easier for the governor.
Will Janet Yellen, nominated by President Obama to head the Fed, provide a reasoned defense of current Fed policies in her upcoming Senate confirmation hearings? It isn’t likely.
“My administration is the only thing between you and the pitchforks.” – Barrack Obama March 27, 2009
The president was speaking to the heads of America’s largest banks in the White House shortly after his election. At this extraordinary meeting, Obama and his administration made it very clear that the big banks would play ball or have problems.
The CEOs of the big banks genuflected, as was wise. Jamie Dimon, Ken Lewis, and others knew what was expected of them. The play for these men was to roll over, which they did. And to write checks to Democrats, which they did.
They had already written big checks to Obama in the 2008 campaign. Wall Street piled onto the Obama bandwagon when things began to look obvious. Goldman Sachs employees for instance were Obama’s largest contributor after the University of California system. JP Morgan and Citi were not far behind.
They all got protection from the “pitchforks,” courtesy of President Obama. In particular, they got protection from legal actions connected to the Crash.
One of the most important rules of crony capitalism is to make the politicians look good. One can do all sorts of things so long as one plays the part. Bankers need to smile and defer (in public) when a political big shot calls on them. It makes the political big shots feel good that one of the Masters of the Universe must genuflect to him or her. Nothing pleases the egomaniacs in Washington DC more. In return the banker, industrialist, whatever gets sweetheart deals, new friends in high regulatory places, and generally cushy treatment from the government.