In his book “The Age of Greed the triumph of finance and the decline of America, 1970 to present” Jeff Madrick states, “Expansion of financial firms does not lead to economic growth.” and “executives make decisions that are best for themselves.”
Government sanctioned tax deductible debt led to corporate take overs and opportunities for hedge funds to further channel more capital into their pockets.
According to Madrick, in 2010, hedge fund manager John Paulson’s firm earned one billion in short sales (betting against securities) while investors lost one billion. Paulson was selecting the securities to be sold to investors and “chose the securities because he believed they whose go bad”. John Paulson earned four billion in total that year.” “In 2006 CDO’s ( junk bonds) produced $8.6 billion in underwriting and management fees for Wall Street.” “That same year Merrill paid $500 million in bonuses to 100 employees.”
In the news on July 18, 2012 from the MWDN 7-18-2012- “Goldman Sachs Administration Services administers about $200 billion in hedge fund assets for approximately for 150 clients.”
The Washington Spectator states-“Alexander Hamilton believed a strong centralized government should shepherd private enterprise toward goals in the national interest. On the other hand is the school of Thomas Jefferson, who preferred a nation of small farmers, small business owners, and a limited government to serve them.”
Having an economy based on rapid short term profits for the few is in neither one of these beliefs, precisely because it is not a fair and equitable way to manage a nation’s economy.
Concentration of wealth is occurring, and Bain Capital is very much a part of this dysfunctional system. Electing a man whose company helped corrupt the country’s economy will bring more suffering.
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