OK, so Greece is messed up. We know that. It’s not a surprise. The call for a referendum from Athens was a surprise but not the end of the world.
If one wants to be an economics superstar there seem to be 4 routes. 1. Win a Nobel Prize. 2. Write a book which is widely read by politicians and the intelligentsia. 3. Just produce excellent work, toil in obscurity, and then have your ideas championed by someone or group with the means to champion someone. 4. Become a presidential advisor.
I am sure that there are other routes too. Becoming a TV personality comes to mind but I can’t think of any economists who have or have had shows of note.
One thing is for sure, presidential candidates, and presidents need economists. Who a candidate partners with is a hugely important decision. To a greater or lesser degree the chosen economic advisor(s) sets the tone for the bread and butter part of any campaign.
Ron Paul calls out the Plunge Protection Team on CNBC. I don’t think I’ve ever heard it mentioned on financial television. Seriously anyway.
And boy is he right. There is an assumption that the Fed will never let stocks (and other assets) revert to real levels.
The thing is the Fed for all its power is still subject to the laws of thermodynamics, just like the rest of us. That is, even the mighty central bank will feel the sting of its hubris.
Of course so will the rest of the planet. Which let me tell you is a real bummer.
Now if only they would get tired of funding crony Republicans.
This happens over and over and over. Mr. Lawsky is just one in a long line of financial regulators who have switched sides. (Well “switched” might be too strong a word.)
Anyone want to start a pool as to how long it will be before Eric Holder cashes in?
Historical experience says that it is very unlikely that we have seen Wall Street’s zenith of influence. But Charles Hugh Smith has some thoughts on the issue. He argues that high finance may be a threat to what he and many others refer to as the “Deep State.” As such the “Deep State” could move to clip Wall Street’s wings.
I don’t know about that.
(From Of Two Minds)
Many consider it “impossible” that Wall Street could possibly lose its political grip on the nation’s throat, but I suggest that Wall Street has over-reached, and is now teetering at the top of the S-Curve, i.e. it has reached Peak Wall Street.
Consider what the extremes of Wall Street/Federal Reserve predation, parasitism, avarice and power have done to the nation, and then ask if other factions within the Deep State are blind to the destructive consequences.
An interesting question to ponder. And no, many components of the “Deep State” are not blind to it at all. But as Ned Beatty in the classic movie Network says…
The quite liberal Vox reports on Hillary Clinton’s “unusually close relationship with Corning” during her run for Senate and in the years after that.
Crony capitalism is bipartisan, transpartisan even.
Though there is a general rule which holds, and that is that the degree to which a politician enables the state is the degree to which that politician will probably enable cronyism. The bigger the government the more crony the government. It’s just the way it is.
The only real way to fight crony capitalism is to lesson the catalyst which makes crony capitalism possible, government. There is no “electing good people” to government and then having a large government “work for the people.” Government corrupts. It is at best a necessary evil. For the most part, get it out of the way.
We are 6 years out from the Crash and everything still feels weird. The economy hasn’t come back. It’s a strange new beast. Alive and not alive. A zombie. Feasting on the last scraps of the real economy.
All the Ex-Im Bank transaction data was online. Then as political pressure built to end the New Deal era program the data suddenly disappeared. Then it was back minus important pieces of the original data. Below Veronique de Rugy continues to hold the Export-Import Bank’s feet to the fire.
Everyone on Wall Street knows that Hillary is there for them. Sure she’s going to talk a good lefty-populist game but everyone knows that it’s bull. It’s part of the game. Tell the “politically unsophisticated” whatever they want to hear. People will forget. They always do. Accountability? Shoot this is 2015, post bailout. Accountability is for suckers.
Having a hard time making your car payment? Oh I understand. I eat at Chipotle too. Late on rent? CEOs make too much money!
Just say whatever. The American people are too “politically unsophisticated” to realize they’re being played. Ready for Hillary!
The problem with the notion that pension reform is “good for Wall Street,” of course, is that pension reform is bad for Wall Street. The biggest shareholders in the world are public employee pension funds. This began back in 1984, when the California state legislature placed a citizen’s initiative onto the ballot, Prop. 21, that “deleted constitutional restrictions and limitations on the purchase of corporate stock by public retirement systems.” Scarcely understood and narrowly passed, Prop. 21 turned California’s government pension funds into the biggest gamblers on Wall Street.