Friday, April 08, 2011

Democrats Wall Street

I have just watched a very interesting interview by Paul Krugman on relationship between Democrats Wall Street. Krugman gave reasons on why Capital Hill didn't take on Wall Street.

Krugman is a well known noble winning economist and is usually taken seriously by democracts. I have issues with a lot of stuff he has been reported to say recently but I found his points on relationship between Wall Street and democrats interesting because he should know.

The following are the main point I got from the interview

  • A significant amount of funding for Democrats come from Investment banking
  • New York is democrat city and Wall Street is in New Your so lean democrat
  • Investment bankers want to support for politicions who will deregulate they business
  • Democrats socialise with Wall Street who have the best parties so want to be in that in group.
  • Once democrats leave politics they expect jobs from Wall Street Firms.

I think all Krugman points are accurate and in a sane world people should be shocked by the lack of ethics that this sort of environment fosters.

For me relationship between Democrats Wall Street is mainly to do with the money. People who spend the most money on elections usually win the elections. Wall Street over the last twenty years are getting the most money so giving politicians access to the best parties, jobs, smart people and campaigns. So you would be highly principled not to take Wall Street Money and reality is you don't get those people passing the primaries e.g. John Laesch

Of course this will get worse as now Wall Street is getting richer because the Fed is printing money and its mainly going to Wall Street, so they are actually getting more powerful in terms of fiat money.

In my experience if you surround yourself with really smart people and you are not that smart you end up taking their positions in a lot of issues. I have seen that happen especially with average politicians. I think this is the case for a lot of Democrat and Republican Politicians. But the worst thing is the ability to bribe politicians through lobbying funds and employment that has the biggest negative affect on Democrats Wall Street.

Also Politicians would be naturally positive to Wall Street types as a signicant amount of their wealth is tired up in Wall Street Investments.

Actually I don't mind business people having more influence then normal people as usually they have more practical ideas that work in the real world. Problem is the business people who are giving the most influence are ones are not giving the best advice. So instead of policies that help business with real goods they are helping business with financial instruments that don't add real value to majority of the punters.


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