financial fiascoes

Political Protection Money Thrives on the Street

polpayments

Protection money is everywhere in society – but nowhere greater than in the relationship of Wall Street and Washington. And it all has to do with “asymmetrical payments”. For Wall Street bankers and investment houses, being able to dictate the Rule of Financial Law is priceless. Thus, just six large Wall Street banks are willing to spend over $100 billion in legal costs and fines…

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Seen on Google + – More Political Irony

larrys

This Monday there was a classic Larry Summers story. It started with an editorial in the Washington Post calling for tax reforms that would redress a fraction of the income inequality that has accumulated over the past 30 years in the US. Larry called it the Downton Abbey economy. He also scuttled the argument that President Obama was off base raising the issue of Income…

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The Best Explanation of Wealth in the USA

This is the best information  by far on the nature of wealth in the USA and the series of problems spawned by ever-widening disparity in wealth. This has occurred before in the USA during the Gilded Age, then again in the Roaring 20’s. But World War II seemed to bring a new deal – an economy based on 70% consumer consumption . However since  Ronald…

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The Real Obama Flaw: Wall Street Now Too Big To Jail

The Real Obama Flaw: Wall Street Now Too Big To Jail

WhatNowCartoons The GOP has been attacking President Obama for all the Wrong Reasons: Benghazi Libyan embassy fight when the GOP had previously cut the State Departments defense funding. Or No New Taxes when there is general consensus that  tax revenues have dried up and tax reform is way overdue. Or the constant return to Obama’s birth certificate. Yet for the past four years, the  Obama administration…

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One More Time: How Goes Executive Pay?

One More Time: How Goes Executive Pay?

The NYTimes had a recent story, The Infinite Pool of Executive Pay. It is  a little hit and miss. The report  comes down on the increase of 18.7% percent in corporate perks. But then we also learn  that overall median pay for the  top 100 CEOs  increased by just 2.8%. However, I had a devil of a time resolving this with the following direct quote:…

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Banks as Flak Catchers for Major Corporations

Banks as Flak Catchers for Major Corporations

Tom Wolfe’s book Radical Chic & Mau-Mauing the Flak Catchers is about  PR and Spokespersons  who seemingly can turn any criticism to the advantage of their client. But “flak catcher” had a second nuanced meaning – those who bore the brunt of public scorn diverting attention away from client and upon themselves. As well, attention was diverted from  other 3rd parties who perhaps deserved the…

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Historic Financial Penalty = Feds Cave Again

Historic Financial Penalty = Feds Cave Again

I dread reading the following headlines in the NYTimes or the Wall Street Journal – Gargantuan Fines Imposed on Wall Street Institution or Record Breaking Damages Inflicted on Bank. It might as well read =>  Hugest Biggest Historically Supercalifragilisticexpealidocious Compensatory Damages Imposed on Piteous Bank because of course it means the opposite. The Federal Government after the worst Wall Street Induced Recession of the last…

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Where is the David Einhorn for America

Where is the David Einhorn for America

David Einhorn, the tiny $7Billion Hedge Fund manager, has tweaked the nose of computing’s Goliath, Apple. Since a week Thursday, David  has shocked the US business world with his direct, loud, and “uncivil’ attack on Apple’s huge cash hoard of nearly $130Billion. And Apple’s cash hoard islikely getting bigger on a  growth rate of 10%per quarter for the next year or two at least. And Apple is not…

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Twinkies Demise

Twinkies Demise

The Hostess Twinkies demise is a business case study that also has political implications. I would love to see if any of the major Business Schools like MIT, Harvard, Univ. of Chicago have taken this defining case on. David Weidner of WSJ and Marketwatch tells the story on who killed the Twinkie: Modern finance is ruthless. Desperate companies sell themselves to Wall Street mercenaries who…

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Daily Fact: GOP Presidents have worst record for Stock Market Performance

Daily Fact: GOP Presidents have  worst record for Stock Market Performance

No less an authority than the Economist shows that under Democratic Presidents the stock market   has outperformed by a wide margin  what was accomplished by Republican Presidents. And this GOP poor economic and stock market performance  goes back  80 years. The fundamental problem is that Republican Presidents have had poor economic policy and tolerated Business excesses. Hoover and Republican predecessors indulgence lead to the…

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