Some of the secret history anyway.
In the wake of the housing crash, wide swathes of the desert Southwest, Florida, Atlanta, parts of California, and other places were littered with relatively new homes which were empty. The pre-seeded lawn turf often hadn’t even taken root before the foreclosures began.
Each vacant home represented a personal economic disaster for someone. Families moved in with grandparents. Pets were left in shelters which were filled far beyond capacity. It was only a couple of years ago. For many the memory is still very fresh.
But at about the same time parts of Tuscon started to be reclaimed by tumbleweeds a few hedge funds (and banks) figured that there was yield to be made from renting the homes which were now unused back to the people who could no longer afford to own them. If the homes could be pooled along with the rents, perhaps the investments could even be sold as derivatives.
Market solution right?
Why would Goldman Sachs be for more regulation? It’s not like Goldman Sachs is full of the shrewdest crony capitalists in the world or anything. It’s not like Goldman Sachs has worked its way into every nook and cranny of government. It’s not like they have their alumni carefully placed in nearly all of the world’s central banks. It’s not like Goldman helped write the Dodd-Frank regulations. It’s not like Goldman benefits from a giant subsidy given to them by virtue of its “too big to fail” status. It’s not like Goldman showers presidential candidates from both major parties with hundreds of thousands of dollars.
European elections are coming.
Sure is nice to be too big to fail. I mean how great is it to work for a bank which pays out million dollar bonuses and is also backstopped by the American taxpayer? Talk about sweet!
Special thanks to Mark Fraisier, an old libertarian (and revolutionary in the best sense of the word) friend for making us aware of this project.
For the record I think people should sweat when they ride a bike, but the world does not agree with me. Plus I don’t have to ride in elevators with sweaty commuters.
It’s all about innovation baby.
High frequency trading has changed the investing world, fundamentally. If you do not write algorithms, if you do not benefit from the super dark high frequency trading system, you are on the outs.
The attached article is a partisan one. There is no mistaking the author’s feelings for Hillary Clinton. Matthew Continetti is not a fan.
In the end, it’s all about raising money for campaigns.
Jamie Dimon is no boy scout and his firm JP Morgan, has benefited immensely from artificially low interest rates from the Federal Reserve and from connections to the Federal government. The bank for the most part sailed out of the 2008 Crash. Aside from the “London whale” incident, the Obama years have been very good ones for the bank. It has seen its partnership with the government grow along with its bottom line over the last half decade.
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.