Given that she supported renewing the Export-Import Bank of the United States, Boeing’s bank, one of the most egregious examples of crony capitalism there is, Ms. Warren also chose to support Wall Street. Additionally, her baby the Consumer Financial Financial Board is (illegally?) housed within the Federal Reserve (not subject to Congressional funding oversight) and has become a lobbyist mill already.
One of the problems with the attached article is that it implies that the reason Goldman pulled the things it did and does is because the Federal Reserve, the regulator, wasn’t and isn’t strong enough to curtail Goldman’s power.
The Fed is plenty strong. Far too strong in fact. What the author doesn’t appear to get is that in this instance we don’t have a case of “regulatory capture” per se. The Fed doesn’t kowtow to Goldman Sachs. The Fed and Goldman, and JP Morgan etc., are partners and always have been.
Hillary Clinton has a problem which is much bigger than just Goldman Sachs. 29 of the Dow 30 have already given generously in one way or another to Ms. Clinton’s presumed 2016 presidential campaign. Goldman Sachs just might be the most repulsive of the big corporate donors.
Nomi Prins is a very interesting and talented financial journalist and attached is a great in-depth interview with her on Democracy Now. She discusses her new book All the President’s Bankers.
In the book she explores the relationship between the banking establishment and the American presidency. It probably won’t come as a shock but she finds that in many respects Wall Street and Washington have long been partners, and particularly since the establishment of the Federal Reserve in 1913.
When I really started learning about high frequency trading about 5 years ago my general interest in the stock market as a vehicle for personal wealth creation diminished quite a lot. The 60 Minutes video which is attached will give you an idea why.
GM at this point should be GMC, Corvette, and Cadillac. These make make sense. There are customers for them and the quality of the cars is nearly that of Japanese and German autos. Cadillac particularly has made tremendous strides. It’s no Mercedes Benz or even BMW, but it has gotten consistently better over the last 10 years. The bumpers don’t fall off anymore. (Remember the Coupe Deville?)
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?