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Post by unlawflcombatnt on Jan 16, 2009 20:51:21 GMT -6
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Post by bariffsterrier on Jan 16, 2009 21:07:22 GMT -6
Glad to see Alan posted, I saw him speak a few years back, very good speaker. I just happened to have another tab open and was reading his blog, I loved this part" ...Citi’s woes over the last year finally tarnished Rubin’s Golden Boy reputation. After all, if the Senior Counselor and board member was such a whiz, why did the company make such boneheaded moves? I mean, I could have ruined Citi in return for a much smaller payout.I've had the same thought, I could have run Citibank into the ground for a tenth of what he made. At Goldman Sachs he ruined the company by betting the farm on Mexico, but then as Treasury Secretary he was able to bailout Mexico, a back door bailout for Goldman Sachs. Now they don't even bother with the subterfuge, just bailout the banks directly, and it is the free traders who are doing it, Biggest bunch of hypocrites I ever saw, and so arrogant that they don't even care about it.
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Post by unlawflcombatnt on Jan 17, 2009 1:38:11 GMT -6
I'm glad to hear someone else sees the current bailout the same way I do. Bailing out banks to "free up the credit markets" is just another version of "trickle down" economics. Bernanke defends the current Corporate welfare policies for banks by saying "we can't grow without a sound financial system."
But neither can we grow if the only thing we have is a "sound financial system." It is even more important that we have a sound way of producing wealth. The financial system produces none whatsoever.
If we had a sound manufacturing and wealth production "system," and wages were being paid out in proportion to the productivity of American workers, we'd have a sound financial system without any government intervention whatsoever.
The current bailout of the financial system has its only possible justification in the fact that the financial system created the fake wealth that sustained our economy in recent years, offsetting the decline in real wealth production as it was being outsourced to cheap foreign labor markets.
The financial industry's "innovations" have provided innovative new ways for consumers to spend money they don't have, even more than was previously possible when credit was created mainly by commercial banks. It is only in recent years that 401Ks, IRAs, and public pension money could be diverted into debt creation, instead of wealth creation.
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