“Responsibility remains so diffuse, and top executives so insulated that any misconduct could again be considered more a symptom of the institution’s culture than a result of the willful actions of any single individual.” -Eric Holder on why he “could not” prosecute anyone in the top echelons of the big banks. What a guy.
Bill Black is no ideologue. He is someone who is committed as far as I can tell to legitimate justice in massive system of financial fraud we know today as “banking.” No doubt he and I would disagree about the size and power of government generally and probably about the fundamental nature of money itself. However, he helped prosecute the case against bankers during the S&L crisis and he is extremely knowledgeable, not to say was also effective.
I think Daniel J. Mitchell sums things up very nicely here. I feel about the same way.
Houses, at least most houses, really aren’t that good an investment. Don’t get me wrong, I own a house. I’m rooting for a housing recovery. And I know some people are upside down on their houses and are hoping to get back above water sometime this decade. They don’t want to believe that their largest asset really isn’t that great an asset. But alas, in many cases, perhaps most, this is true.
For the bankers the main issue is who will keep the current implied bailout regime in place? Who will let the Federal Reserve do what it does without criticism? Who will keep the light from shining on them? Who won’t question the current system of debt piled on debt piled on debt. Who will happily do The Street’s bidding?
Hey Hillary, you’re “pragmatic.” You look pretty good. Here’s $100 million. Now go knock em’ dead.
We’ve written about the petrodollar a number of times. I even wrote 2/3 of a novel around the petrodollar a few years ago. It is important and it is not widely understood.
In a nutshell oil is traded in dollars and only dollars. (Almost entirely, countries have tried to set up side deals without the dollar but for the most part the dollar is where it’s at.) That means if country A wants to buy oil from country B country A better have some dollar reserves. Of course we get to “print” dollars which is nice for us.
The dollar is the world reserve currency. But if that were ever to change, especially if somehow it changed quickly, things would get pretty crazy economically pretty fast, think 2008 times 5. The “good” news is we have a bunch of aircraft carriers on call 24/7 to make sure that doesn’t happen. At least the US thinks it’s sure it won’t happen.
Always makes sense to watch the petrodollar but especially in times like these.
Scalise discusses a number of things in the attached interview, including the Keystone Pipeline, the minimum wage, and “bipartisanship” (fear bipartisanship). But the most important nugget is that it looks like Congress will force a Fed audit onto Obama’s desk and he will have to sign it or veto it.*
As a young broker an older quite successful broker told me the same thing. He also said that there was no reason to watch CNBC after 9:30 (the opening market bell) because anything of value for the day which actually found its way onto TV happened before the markets got rolling.
I have found both bits of advice to be right.
C.J. Prince, the author of this article does an excellent job of examining crony capitalism and the associated dangers to the economy. Crony capitalism does indeed hurt us all. Even Boeing and GE will likely be hurt in the long run. If the USA becomes a truly cronyist economy growth will limp along (if we are lucky), dynamism within the economy will suffer from lack of oxygen, wealth will slowly erode away from the middle class, and we will wake up one day and find ourselves outclassed by freer economies in other parts of the world.
The American Dream is being chased out of America by the cronies.