Success Breeds Failure is the title of Paul Krugman column in the NYTimes. It is chillingly accurate. Forces are marshalling against any Wall Street Reform after the mortgage and investment banking crisis of this past year which a)had the Fed rescuing again investment bankers, hedge funders and private equity firms who say to the companies they saddle with debt and to the millions they fire from their jobs – “we are doing this for your and the economy’s best interests – your companies have failed in the market place and we have ‘to rescue you’ for enormous fees to us” meanwhile knowing full well and making that case explicit to the Fed and government representatives, that “when we fail you Fed’s can’t possibly let us go under because again the whole economy is at risk” These same financial malefactors argue b)”don’t you dare regulate us because we could take our business overseas to London or HongKong – and we can take our lobby dollars elsewhere”. And having rewarded themselves to the tune of $100billion per year, they certainly can make good on the latter threat
It is this latter point that I am surprised Paul Krugman does not take up. The power of hugely wealthy interests to put a massive and pervasive “lobby” campaign. For example read what the Harvard Business Review has to say about Private Equity “and its benefits”. The US is rapidly moving towards a bautocracy where Success Breeds Failure.
Not good – I need a fifth.