#CorruptionExplainsConspiracy - Corruption today is so plainly EVIDENT, so widespread, there is little debate. Powerful forces naturally, and predictably, share common incentives to collaborate with one another to accomplish shared interests, even when outwardly, they would appear to be in opposition. Conspiracy MUST be anticipated, not mocked.
This. I lived in the USA for a couple of years during the 2008 bust and have moved to Ireland in 2012 (before you ask, I do NOT have a penchant for failed economies). I’ve seen similar responses to the crisis in both countries (https://www.irishtimes.com/business/financial-services/was-it-worth-paying-41-7bn-to-bail-out-irish-banks-1.4036792), and one thing I asked myself is whether or not we (as in Western societies) will be able to get ourselves out of the grasp of the neoliberal buffoons with general populace’s profound ignorance on how modern monetary systems work and how easily can you masquerade the corruption if you use enough abbreviations and words like “bonds” (I dare you to count how many people in your life know what bond means).
Great, clear writing about a complex subject that usually makes eyes glaze over. More than happy to pay for this on a subscription basis. Keep it coming!
Neoliberalism worships at the altar of "free markets" and yet those that worship there do everything in their power to stop the free market when it goes against them. When I try to explain the need for regulation in many areas of the economy, it is almost certain that the response will be that that is interfering with the market. My response is you can't preach markets unless you understand market failures.
Matt mentions this in his post: "Investors are now chasing Fed decisions with seemingly real zeal, causing private money to flow directly into the very risk-laden sectors of the economy they probably would be fleeing absent government intervention." This is an excellent example of two categories of market failure, moral hazard and adverse selection. Other failures are herding or co-tangled decision making. The biggest of them all is asymmetric information or the seller knows more than the buyer. This last one is in a mantra I repeat to myself when I read reporting intended to inform. Asymmetric information and confirmation bias, asymmetric information and confirmation bias
Matt provides good balanced information and in that I'm biased.
Mnuchin and Blackrock in charge of the leveraged rescue package is what I'd call a financial Covid death panel, determining who gets a respirator and who does not...
When the crisis hit, it was a triple whammy — financial, economic and, of course, health.
The Fed actions deal with the first, ensuring that Wall Street does not encounter any problems down the line — ensured that will be made whole — when the credit crisis hits when too many debtors won’t be able to even service their debts. The justification is based on the fiction that finance=economy.
As for the economic crisis, McConnell has made clear with his initial (delayed) draft of the CARES Act that all that matters are the GOP’s special interests. We, the people, and small businesses, have pretty much gotten all we will from our leaders in DC. Probably be another woefully inadequate payout to people and more money for loans to small businesses so that maybe actual small businesses, as opposed to, say, hedge funds, can get enough to stay in business.
As for the health crisis, Trump and the Party of Trump are literally murderous. But doing all they can to limit testing will ensure that the numbers stay artificially low.
And what’s maybe the saddest part is that Boris Johnson is well to the left of Donnie.
Rhamamurti could crowdsource a lot of the oversight figures, if he had data sets to work with. There's no shortage of clever and motivated individuals that are not too busy these days
If your just a "consumer [non-professional] Investor", the old adage "don't fight The Fed" now really applies. Price discovery is out the window, "good companies" be damned.... just buy what they are buying and it's easy to find out, just look at Blackrocks prospectus ... Oh, until you get complacent and some other "black swan" event happens or those financial instruments tank "for no good reason" ????? ...
Except ... there's always a reason, ... your just not part of "THAT Club" 🤣
First off, thank you. You are a gifted and principled investigative reporter, the perfect person to chronicle the high crimes of the financial netherworld. Appreciate the laughs. Looking forward to future essays. Michael King, Vancouver
Thank you for all the work you do. Maybe people will pay more attention this time. How they could ever forget the injustices from the last bail out, and the lack of punishment that resulted, is beyond me. I have never forgotten. This time people are dying. It is so depressing.
Matt - Thank you for your work. Seems that there has been a liquidity crunch/lockup in the institutional markets for the past few years which came to a head in Oct 2019 and Mar 2020. Both times, the Fed had to intervene. Any interest in considering a possible sequel to your work on the GFC since they might (or might not) be related?
"No surprises here!" - With Eric Holder and Obama's refusal to prosecute the Wall Street crooks and the colluding credit rating (risk) agencies (Moody & S&P) for the 2008-2009 banking/credit crisis, claiming it was "too complicated" for the public to understand, they showed anything goes when it comes to stealing from the American public. Now record setting fraud and collusion rules the day - nothing is a surprise anymore when it comes to our totally corrupt Congress and their Wall Street cronies. Then add in the super corrupt, shelf-serving Trump administration - our elected capitalism kleptocrats own the day. Pitiful!
I hope all the partisans realize they are getting a nice hard double penetration by both parties on this. Red & blue, they don't care about you.
#CorruptionExplainsConspiracy - Corruption today is so plainly EVIDENT, so widespread, there is little debate. Powerful forces naturally, and predictably, share common incentives to collaborate with one another to accomplish shared interests, even when outwardly, they would appear to be in opposition. Conspiracy MUST be anticipated, not mocked.
This. I lived in the USA for a couple of years during the 2008 bust and have moved to Ireland in 2012 (before you ask, I do NOT have a penchant for failed economies). I’ve seen similar responses to the crisis in both countries (https://www.irishtimes.com/business/financial-services/was-it-worth-paying-41-7bn-to-bail-out-irish-banks-1.4036792), and one thing I asked myself is whether or not we (as in Western societies) will be able to get ourselves out of the grasp of the neoliberal buffoons with general populace’s profound ignorance on how modern monetary systems work and how easily can you masquerade the corruption if you use enough abbreviations and words like “bonds” (I dare you to count how many people in your life know what bond means).
Great, clear writing about a complex subject that usually makes eyes glaze over. More than happy to pay for this on a subscription basis. Keep it coming!
Neoliberalism worships at the altar of "free markets" and yet those that worship there do everything in their power to stop the free market when it goes against them. When I try to explain the need for regulation in many areas of the economy, it is almost certain that the response will be that that is interfering with the market. My response is you can't preach markets unless you understand market failures.
Matt mentions this in his post: "Investors are now chasing Fed decisions with seemingly real zeal, causing private money to flow directly into the very risk-laden sectors of the economy they probably would be fleeing absent government intervention." This is an excellent example of two categories of market failure, moral hazard and adverse selection. Other failures are herding or co-tangled decision making. The biggest of them all is asymmetric information or the seller knows more than the buyer. This last one is in a mantra I repeat to myself when I read reporting intended to inform. Asymmetric information and confirmation bias, asymmetric information and confirmation bias
Matt provides good balanced information and in that I'm biased.
Free markets for thee; guarantees for me ...
Mnuchin and Blackrock in charge of the leveraged rescue package is what I'd call a financial Covid death panel, determining who gets a respirator and who does not...
A few points in no order of importance.
When the crisis hit, it was a triple whammy — financial, economic and, of course, health.
The Fed actions deal with the first, ensuring that Wall Street does not encounter any problems down the line — ensured that will be made whole — when the credit crisis hits when too many debtors won’t be able to even service their debts. The justification is based on the fiction that finance=economy.
As for the economic crisis, McConnell has made clear with his initial (delayed) draft of the CARES Act that all that matters are the GOP’s special interests. We, the people, and small businesses, have pretty much gotten all we will from our leaders in DC. Probably be another woefully inadequate payout to people and more money for loans to small businesses so that maybe actual small businesses, as opposed to, say, hedge funds, can get enough to stay in business.
As for the health crisis, Trump and the Party of Trump are literally murderous. But doing all they can to limit testing will ensure that the numbers stay artificially low.
And what’s maybe the saddest part is that Boris Johnson is well to the left of Donnie.
Rhamamurti could crowdsource a lot of the oversight figures, if he had data sets to work with. There's no shortage of clever and motivated individuals that are not too busy these days
If your just a "consumer [non-professional] Investor", the old adage "don't fight The Fed" now really applies. Price discovery is out the window, "good companies" be damned.... just buy what they are buying and it's easy to find out, just look at Blackrocks prospectus ... Oh, until you get complacent and some other "black swan" event happens or those financial instruments tank "for no good reason" ????? ...
Except ... there's always a reason, ... your just not part of "THAT Club" 🤣
Side note: you + are = you're
Was CARES written by lobbyists or members of Congress
My feeling was exactly this. Conclusion: Some members of Congress act as highly motivated lobbyists.
First off, thank you. You are a gifted and principled investigative reporter, the perfect person to chronicle the high crimes of the financial netherworld. Appreciate the laughs. Looking forward to future essays. Michael King, Vancouver
Occupy the Fed.
"End the Fed"
Fixed it for you. You're welcome
;-)
Thank you for all the work you do. Maybe people will pay more attention this time. How they could ever forget the injustices from the last bail out, and the lack of punishment that resulted, is beyond me. I have never forgotten. This time people are dying. It is so depressing.
Audit the Fed and end the Fed. These failed companies we are bailing out need to return the money and fail. This what people should be asking for.
Matt - Thank you for your work. Seems that there has been a liquidity crunch/lockup in the institutional markets for the past few years which came to a head in Oct 2019 and Mar 2020. Both times, the Fed had to intervene. Any interest in considering a possible sequel to your work on the GFC since they might (or might not) be related?
These fuckers are just shameless pirates. Save Wall Street by buying all their now worthless assets and turn them into government investment vehicles.
"No surprises here!" - With Eric Holder and Obama's refusal to prosecute the Wall Street crooks and the colluding credit rating (risk) agencies (Moody & S&P) for the 2008-2009 banking/credit crisis, claiming it was "too complicated" for the public to understand, they showed anything goes when it comes to stealing from the American public. Now record setting fraud and collusion rules the day - nothing is a surprise anymore when it comes to our totally corrupt Congress and their Wall Street cronies. Then add in the super corrupt, shelf-serving Trump administration - our elected capitalism kleptocrats own the day. Pitiful!