This is a shocker. People in the poverty business making huge piles of money? Who would have thought? I mean it’s not like the people at ACORN were crooks. Or Al Sharpton. Or Jesse Jackson. Or the people who run much of places like Chicago, Detroit, New York, and LA. No no, these people are for helping the poor. Selfless servants seeking justice. No way they are lining their own pockets and scamming the tax base.
People seem confused by this rally. Really a rally on top of a Fed induced (to a very large extent) bull market extending back many years. How can this be, some wonder? Trump is bad news. How could the market tick up, solidly and definitively, in the wake of Trump’s election?
My feeling, and it is only this, and it is sure to contradicted by many a CNBC Squawk Box special guest, is that investors are just relieved that Obama is gone and that America dodged the Hillary bullet.
People around the world are coming to understand what crony capitalism is. This comes to us from Australia. The author still has a bit too much faith in government but generally he gets it.
Novak was a giant of world thought, one of the most brilliant defenders of the free market and an opponent of crony capitalism, always bringing it back to what can we do to rescue people from poverty, always from the point of view of a devoted Catholic Christian.
No! We are shocked. Shocked! I tells ya.
Going forward the Trump needs to be held accountable. With properties and projects around the world there are and will be many opportunities for crony capitalism to sprout within the new administration. It is incumbent upon those of us who believe in free markets and a non-crony economic system to hold the new administration’s feet to the fire. Cutting the federal workforce is excellent. Handing out subsidies to favored businesses would be very very bad.
Trump has an historic opportunity to rise above the crony temptations which are now laid out before him.
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.
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.
Image: Screenshot Business Insider
I have long contended that restaurants are one of the most capitalistic areas of our economy. Make good food at a good price and people come back. Repeat over and over and over. Keep making people happy and you keep making money.
That is unless the regulators start shaking you down.
This place looks delicious. Here’s their Facebook page if you want to track them down.