Elizabeth Warren gets her first trophy.

Discussion in 'Politics, Religion, Social Issues' started by aaronvan, Jan 12, 2015.

  1. aaronvan Suspended

    aaronvan

    Joined:
    Dec 21, 2011
    Location:
    República Cascadia
    #1
    I'm happy. This Wall Street corporatist was part of the problem, not the solution.

    Good Lord. How much of that is China's?

    Unfortunately, he'll still have the President's ear. And we know Obama (and Hillary) never met a Wall Street banker they didn't love.

    http://www.politico.com/story/2015/...t-treasury-undersecretary-114191.html?hp=t1_r
     
  2. rdowns macrumors Penryn

    rdowns

    Joined:
    Jul 11, 2003
    #2

    About $1.25 trillion.
     
  3. skunk macrumors G4

    skunk

    Joined:
    Jun 29, 2002
    Location:
    Republic of Ukistan
    #3
    Peanuts, then.
     
  4. vrDrew macrumors 65816

    Joined:
    Jan 31, 2010
    Location:
    Midlife, Midwest
    #4
    Forgive me for pointing this out, but surely you want people with some experience in the financial industry at the the top levels of the Treasury department? Its no use asking a retired math teacher or a state Motor Vehicles administrator to oversee Treasury auctions and Eurodollar repurchase agreements - because they'd have no idea of what was going on.
     
  5. VulchR macrumors 68020

    VulchR

    Joined:
    Jun 8, 2009
    Location:
    Scotland
    #5
    After the Great Recession professional financiers have no credibility, nor do government officials who pucker up to the financial industry. There are other pools of expertise, such as academia.

    And financiers do? Show me any evidence that financiers can predict the future of the economy, because their recent performance sure as hell makes them look clueless.
     
  6. vrDrew macrumors 65816

    Joined:
    Jan 31, 2010
    Location:
    Midlife, Midwest
    #6
    Can you point me to evidence which would suggest Mr Weiss (the Lazard executive who withdrew his name from consideration) bore responsibility for any aspect of the Global Financial crisis of 2008?

    He was a highly successful Mergers & Acquisitions executive who helped broker some of the largest deals in recent history. He had precisely nothing to do with mortgage finance in the US or anywhere else; he did not create, buy or sell "toxic assets" such as collateral debt obligations.

    Simply blaming everybody who has worked on Wall Street or in global finance for every economic malady is absurd. The blame can be spread to include government regulators and elected politicians along with the scoundrels at Countrywide and greedy property developers and real estate agents.

    Mr Weiss, by offering his name as a candidate for Under Secretary, passed up the opportunity to make very large amounts of money the coming years, instead offering his considerable talents in public service. He will still take a position with the Treasury - albeit one that does not require Senate Approval.

    I admire and support Senator Warren in her efforts to reform and regulate the Financial industry. But I think in her vilification of any and all Financial executives she is misguidedly throwing the baby out along with the proverbial bathwater.
     
  7. aaronvan thread starter Suspended

    aaronvan

    Joined:
    Dec 21, 2011
    Location:
    República Cascadia
    #7
    For two years at the most, then it's back to Wall Street with his new Washington D.C. contacts. The old revolving door, you know.
     
  8. sodapop1 Suspended

    sodapop1

    Joined:
    Sep 7, 2014
    #8
    Let's not forget about the American people who collectively, by either voting for them or choosing not to vote at all, allowed these politicians to get into office in the first place. After all, isn't it government for the people by the people?
     
  9. VulchR macrumors 68020

    VulchR

    Joined:
    Jun 8, 2009
    Location:
    Scotland
    #9
    The whole financier class was tarnished by 2008. It's not just the unethical, incompetent and illegal actions of individuals that are being judged, but the attitudes and values of the whole sector that condone and rationalise worsening wealth inequality. So this guy is 'experienced'. Experienced at what? Making wealthy people even more filthy rich? You say Weiss worked in mergers and acquisitions. How many people did he put out of work? I want our government appointing people who know how to make the economy work for the many, not the few.

    As for my point about 2008, while Weiss was doing mergers and acquisitions, surely at some point the issue of the health of the economy was being considered. Did he predict the economic downturn or was he one of the people who fooled themselves that the boom/bust cycle had disappeared? Again, I believe somebody has expertise when they show me they can actually predict the economy. Otherwise it's all smoke and mirrors.
     
  10. vrDrew macrumors 65816

    Joined:
    Jan 31, 2010
    Location:
    Midlife, Midwest
    #10
    Nobody can, with 100% accuracy, predict the economy. (I say this as a phD Economics graduate.) There are far too many variables; and the very best data we have from Government and business sources is often woefully inaccurate.

    More to the point: An undersecretary of the US Treasury's responsibilities do not include making accurate predictions of the future of the US economy. That is a task better left to economists who work for the Federal Reserve Bank (to influence interest rate policy) or the Government Office of Management & Budget: to present analysis on the effects of proposed legislation on future taxes and budgets.

    I recognize very clearly the anger many people feel about the disastrous results of the 2008 financial crisis and its aftereffects. However, condemning an entire sector of the economy as criminal and/or incompetent is not only inaccurate, but totally counterproductive. Like it or not: the world needs bankers and financiers. It has since the days of the Pharaohs.
     
  11. aaronvan thread starter Suspended

    aaronvan

    Joined:
    Dec 21, 2011
    Location:
    República Cascadia
    #11
    Non sequitur, but I always wondered why there is a Nobel Prize for economics but not mathematics. (yea, Fields Medal, yada, yada, yada...)
     
  12. VulchR macrumors 68020

    VulchR

    Joined:
    Jun 8, 2009
    Location:
    Scotland
    #12
    Not all cultures - not even all modern cultures - have all forms of banking we currently see as a necessity. The current financial system generates profits for a few, not prosperity for the majority. Moreover, I do not see how it is counter-productive to point out that we are on a slippery slope of worsening wealth inequality. If you want to experience something counter-productive, imagine what happens when rioting becomes widespread. It took years for the Great Depression to have its social impact. It would be naive to think that the social impact of the Great Recession has passed its peak. Already in Europe their is rampant xenophobia... (sound familiar?) ...
     
  13. vrDrew macrumors 65816

    Joined:
    Jan 31, 2010
    Location:
    Midlife, Midwest
    #13
    Wealth inequality is indeed a serious economic concern and a barrier to future growth.

    But I'm not sure the fault for that can be laid squarely on the banking or financial system. Inequality in the West is largely the result of globalization (ie. the ability to produce goods anywhere, most usually at the point of lowest wage costs) combined with technological advancement (ie. superstar musicians and athletes can sell their "product" to audiences in the billions. Meaning less work for local singers and soccer captains) along with disastrous political policies: ie. regressive taxation schemes; "privatization" of public services; and baseless austerity programs.

    None of the foregoing have much of anything to do with the banking or finance industries.

    And, in fact, capital markets are our best hope to counteract the destructive power of income inequality. Look at the millions of people now employed by the "App economy"; look at the tremendous wealth created by venture capital in Silicon Valley; look at the ready access to capital virtually anyone with a decent business concept can obtain. And look at the growth of small-scale entrepreneurship through such companies as Uber and AirbNb.

    Undoubtedly there are incompetents and criminals who work in Finance. But to broadly condemn the entire industry as such is mistaken.
     
  14. VulchR, Jan 19, 2015
    Last edited: Jan 19, 2015

    VulchR macrumors 68020

    VulchR

    Joined:
    Jun 8, 2009
    Location:
    Scotland
    #14
    Let me put it this way: If you believe the financial markets are necessary to reduce wealth equality to sustainable levels, then why is the system continuing to spiral toward a winner-take-all outcome? Oxfam is predicting that the richest 1% in the world will own more than half its wealth sometime during this year (see http://www.bbc.co.uk/news/business-30875633). It seems to me that the whole financial system is geared toward making the rich richer, and my hope is that our government will appoint people to watch over the economy who do not have a naive faith in the rationalisation that the free market leads to a sustainable way of life.
     

Share This Page