Wall Street Oligarchy: Read All About it

March 28, 2009 by  
Filed under Economics

wall_street_oligarchyMy brother (a really smart guy and a dedicated gold investor) sent me link to an article that will be published next month in The Atlantic. The article is called “The Quiet Coup” and was written by Simon Johnson, an MIT professor and former chief economist at the International Monetary Fund. It describes how the entrenched power structure in the Wall Street financial world – the oligarchy – has had a stranglehold on our economy and on our government, even to this day.

It makes a powerful case for nationalization of the big banks as the only sure way out of the mess we are in. That’s hard to take for free market guy like me.

I highly recommend that you read it. Even if you don’t agree with the author’s conclusions, the recitation of facts about the incestuous nature of finance and government will get your blood boiling.

Oh, and check out the author’s chart on how employee compensation in the financial sector has ramped up over the years with respect to the rest of us. Did they deserve it? In retrospect, I think not.

While I am mentioning financial news that gets me agitated, read this piece from Mother Jones about one of the Wall Stree lobbyist hacks that Geithner is bringing into Treasury with him. Does Timmy know anyone not tainted by past experience?

Otherwise, have a great weekend.

Image credit: Flypegassus

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4 Responses to “Wall Street Oligarchy: Read All About it”
  1. Rick Beagle says:

    Careful there! You are starting to sound like a Liberal?!

    Just kidding, and thank you for sharing.

    Rick Beagle

  2. Rick Beagle says:

    Here is another fine article for you to read, and mull about. This just keeps getting worse and worse….

  3. RC Brooks says:

    I have had many of the same sentiments as the article. Of course many don’t agree with me, because I feel that social concerns have to be taken into consideration when speaking about finance and vice-versa. I worry that the excess of our financial “geniuses” are shoving us into socialism.

    I worry about the health of the US, because we just are producing enough. Money “made” on the stock market isn’t actually a product at all. All money as we know it comes from material resources and similar stored from previous generations. When you have these new financial products, all it really does it remove actual wealth from the base of the economy.

    But then again, what do I know?

  4. MasterPo says:

    RC – What’s the difference between money made by someone working a machine that produces a product vs. money made by someone who loaned or finance (i.e. invested in) the person working the machine?

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