tag:blogger.com,1999:blog-6399730406480392183.post2386292887672439548..comments2024-03-27T11:18:34.222-03:00Comments on Viable Opposition: Wall Street Bonuses and America's Minimum Wage EarnersA Political Junkiehttp://www.blogger.com/profile/03342345936277964422noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6399730406480392183.post-52924583831172697632015-06-27T14:18:36.858-03:002015-06-27T14:18:36.858-03:00That's right. The US system is now a parody o...That's right. The US system is now a parody of Capitalism, and it's not generally understood that since 2009, Wall St has been "on govt.welfare". .<br />(1) Capitalism is not a religion or moral or social principle! It's just a way of applying REAL capital to maximise output. REAL capital is the 'stored energy'; the real fuel that powers an economy. 'Money' is not real capital. It's just a proxy, that can be magic-ed from nothing in banking by increasing leverage. Get that right, and its useful. But you can't magic real captial. When it and the proxy get too far separated we get boom then bust.<br />(2) Wall St is about allocating MONEY to maximum PROFIT. <br />Applying real capital to maximise output, and allocating money to maximise profit are very different things, but generally thought of as the same. The difference is the reason that the interests of Wall St and Main St are more often in opposition than aligned. That misalignment since 2009 has become much worse, and is the core problem with the US economy. The conspiracy theorists are not all wrong. Many in Wall St and Washington understand the conflict perfectly well. And much of Washington has been bought. But The Fed et al mostly don't get it. they steer by faulty charts and compass. Bernanke let the ship hit the rock because he knew it wasn't there. HE still doesn't get it. The Fed truly believes that looking after Banking (which caused the crisis) is the key to fixing the crisis. This will not work, and it'll take Crisis Mark2 for that penny to drop and sensible action to be taken i.e. Wall St to be brought under the heel of Main St. Right now, the master is serving the dog. If that doesn't change, the problem will simply worsen.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-60814853760381727792015-03-27T12:44:35.962-03:002015-03-27T12:44:35.962-03:00@Gregory Lee If we had real Capitalism most of the...@Gregory Lee If we had real Capitalism most of these bums would not be around any more on wall street they(their companies) would have went belly up in 2007. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-42526715403034353602015-03-27T10:54:16.543-03:002015-03-27T10:54:16.543-03:00So what are you saying? Capitalism is unfair? Da...So what are you saying? Capitalism is unfair? Dangerous?Gregory Leehttps://www.blogger.com/profile/11293280236115306205noreply@blogger.com