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.
“Hard working middle class families and small businesses all over America are being financially raped by this insidious system.”
The federal government has just decided that poverty for family of 4 in New York City means an income of up to $37,500, not $22,500. Quite a leap. As before, the figure excludes earned income tax credit cash checks from the government and also medical and other non-cash assistance.
In his Daily Beast article below, Michael Tomasky says that the presidential election has finally killed off Reaganomics which he further defines as “trickle down” economics which he also refers to as supply side economics and tax cuts for the rich.
If it wasn’t for the Fed’s actions, the QE, the twisting, stocks would be 50% lower. This was the recent headline. Heck, the market might be lower than that, but that would not have been entirely a bad thing, nor even mostly.
The rich benefit most from government actions and in the attached article Bill Bonner at the Daily Reckoning explores this thesis.