Tuesday, October 9, 2012

Is it all about incompetence or just pretense?

It is clear to everyone today that President Obama hasn't been able to rein in the giant banks or significantly lower unemployment. Obama is following disproven models, and has appointed economists who either helped cause the crisis in the first place, or who have drunk the Kool-Aid of failed economic theory.
But Obama has actually been serving "his constituency": Goldman Sachs and the other  Wall Street giants which funded his campaign…..and top economists running the Fed and advising Obama didn't miss the dangers to the economy due to negligence, mainly because they are rewarded for doing so.
It is a fact that the decision to use faulty models was an economic and political choice, because it benefited the economists along with those who hired them. For example, the elites get wealthy during booms and they get wealthy during busts. Therefore, the boom-and-bust cycle benefits them enormously, as they can trade both ways. - Blackhawkpartners

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