Sunday, April 10, 2016

@SenSanders Confusion About Wall Street

Socialist Bernie Sanders, who is seeking the Democratic nomination for president, viciously ripped Wall Street during a recent interview with the New York Daily News:
Let me be very clear about this. Alright? Let me repeat what I have said. Maybe you've got a quote there. I do believe that, to a significant degree, the business model of Wall Street is fraud.
And you asked me, you started this discussion off appropriately enough about when I talk about morality. When I talk about it, that's what I think. I think when you have the most powerful financial institutions in this country, whose assets are equivalent to 58% of the GDP of this country, who day after day engage in fraudulent activity, that sets a tone.
WTF? Does Bernie have any idea what Wall Street is about?   Is the " business model of Wall Street fraud"?

Wall Street is the money raising capital of the United States, if not the world. It is the epicenter from which stakes in some of the most important companies in the world are traded. Without a functionoing capital center like Wall Street, the financings of vast amounts of business projects around the world would never get off the ground.

And Bernie is calling this activity fraud!

To be sure, there is a crony part of Wall Street as evidenced by firms like Goldman Sachs, who cut crony deals with the government but this is an extremely limited part of Wall Street,

To take what Goldman Sachs is up to and paint all of Wall Street with that brush is like taking the chid molestation activities of  former House Speaker Denny Hastet and claim all congressman, including Senator Sanders are child molesters.

Further, Bernie is attempting to resolve the "problem of a fradulent Wall Street" by calling for more government regulations. But it is precisley the regulations which the crony parts of Wall Steet use to stifle competion from the parts of Wall Street that don't play the crony game.

Regulations create power centers that the bad guys go after and co-opt. They are very good at it. The solution is not more regulations. It is less regulations so that the true comeptituve parts of Wall Street can be unshackled and offer true competition to those who seek to benefit only by crony deals.



  1. Lets not confuse wall.street with text book theory of finance. I'm sure sanders understands what value "banks" serve to the market/economy. He is pointing to the obscene leveraged risks and $Mil bonuses that fresh out of top MBA schools with barely 3 years experience were making few years ago. And still do.

    As a whole , LOT of what "" does is betting...using other peoples money. With FED and its recent symobious with, the RISK-ON is the new mantra. Bet any thing everything...get the old people pensions if need be.

    Sanders is not talking about the required banking/finance services rendered by *some* banks. Lets not presume he is an idiot.

    1. The man thinks bread lines are a good thing. If he is not an idiot then he is pure evil.

  2. The current Fed money printing inflated, privatized profits/socialized losses, gov't/war enabling, economy financializing, capital market structure IS fraudulent. Your idealized description of the function of the capitals markets these days seems anachronistic, at best. Obviously, Sanders' call for more regulation isn't the answer, though.

  3. Sanders knows absolutely nothing about anything. Neither do his supporters. Tell them the truth in short declarative sentences and their brains flatline. I’m convinced that Sander’s fact-free existence is the basis for his widespread support.

    The same goes for Trump and his supporters. Just as THE FED does not register* with the “progressives”, the Republican Cruz supporters can only endlessly chant “Benghazi Benghazi Benghazi”. The idea that Obama and Hillary totally flattened Libya and Syria does not register at all because it contrasts with the pre-existing notion that Obama is a weenie who refuses to fight “radical Islam”.

    Go to a video store and look at the displays. Americans won’t watch a movie that concerns actual places and actual historical events. Tell them a fantasy and they will eat it up. They will turn away bored in 8 seconds from the truth.

    How are average people going to understand the ABCT if 99% of them still think that inflation is a mysterious and inexplicable force of nature and not purposeful government policy?

    *THE FED does not register at all, much less as an example of government intervention.

  4. Regarding Israel 2014 slaughter of innocents in Gaza, Sanders gets the theme right including the intentional bombing of hospitals, but he over-inflates the death toll by 5x. He should know that stuff cold. And of course, we need to keep sending welfare money to Israel. Hey Cruz supporters, where is that permitted in the Constitution?

  5. My impression is that the Cruz supporters HATE Trump because Trump is seen as something less than a 110% whore for Israel.