The Gilded Age of Finance

The New York Times has a few articles online today that are really worth the read.
First, since it’s Monday, there is Paul Krugman’s piece. In which he points out the fallacies of this gilded age, as Sanford Weill former Citigroup CEO called it, shortly before the financial system came down. It may have had a gilded outside, but it was a Potemkin villiage nevertheless. Well, in reality is was and still is a gilded age for some. Just think about the bonuses and perks of managers and the dividends some investors pocketed.
Timothy Geithner, and before him Hank Paulson intend to keep it that way by doling out trillions of dollars to their Wall St buddies. In another piece the NYT points out the close relation Geithner has with the Wall St. executives. Not only him! The whole administration is full of such people. All with very close ties to Wall St., all having a financial stake in the success of the policies that they push and with a remarkable number of ex-Goldman Sachs and Harvard people.
Coincidence? Hardly. Got to keep the Ponzi scheme running and create bubbles with phony financial ‘instruments’ that only serve to make things opaque and difficult so that no one notices that this is just a device to siphon-off the money from investors (mainly your pension fund) to a few hand-picked members of the financial guild.


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