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?
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!