Good report. Our system of crony capitalism has cut many people out of upward mobility, or at least made it much harder to get ahead. In our current system the established players compound their wealth with the help of the state.
The only people who have seen their real incomes increase under this president have been the top 5% of earners. Those with large investment portfolios have seen their assets grow – or perhaps more accurately, have watched them inflate – while most of America has seen its income reduced over the last 5 years. Adjusted for inflation the average household in America makes less than 2008. Quite a bit less.
My bet is that within 15 years the American car manufacturers will mess things up again, but for right now they are bailout plump. The city which grew up around the big 3 is in a nearly post-apocalyptic state however. Miles and miles and miles of rust spread out from the city center where GM and Chrysler executives look down from their offices.
That is when they aren’t touring the new manufacturing facilities in China.
In an earlier post we mentioned how Washington DC has thrown in with Wall Street. And why not? That’s where the money is, where it continues to flow, and through our current system of crony capitalism will continue to flow until people say “enough.”
Obama has expanded the crony capitalist state. Like his brother in cronyism George W. Bush, Obama has made every effort to help the connected get more connected and the wealthy wealthier. As the attached article explains, if one is heavily invested in the market, if one is a banker at one of the big banks, things are going pretty well. If one is not in that camp things are likely going significantly less well.
“Very clever men have a capacity for very great mistakes which often elude simpler souls.”
Basically the analyst on a call asks Dimon whether slightly higher capital ratios, in other words the amount a bank holds on hand relative to the amount lent or otherwise being invested, would be more attractive to clients. In this case, UBS maintains a capital ratio of 13%, JPMorgan 10%. The lower the ratio the more the bank is leveraging the funds it holds. More leverage (so long as hard times don’t hit) equals more profits. With a too big to fail designation JPMorgan needs to worry less than some other banks about hard times. The taxpayer will be there to save them. Privatized profits and socialialized (potential) losses, that’s why Jamie Dimon keeps getting “richer.”
Hey, life isn’t fair. But we have got to do something about Social Security and the coming debt bomb.
Of course most seniors don’t consider Social Security theft, and the headline above is intended to be inflammatory, however the Social Security system we have now is completely unsustainable. It hurts many who are just struggling to make it in an economy which is very different from the rising tide many retirees experienced over the past half century.
Unfortunately, the government isn’t helping answer the question.
Republicans are either working for the rich, not the poor or average person, or they are not. This is a way to reveal themselves one way or the other.