Posts tagged ‘crony capitalism’

“Lobbying”

What if you could bet on Wednesday’s NBA game between Golden State and Oklahoma City, and before the game or at least before the final buzzer, you could lobby the referees and the league to change the rules? Maybe you would bet on Oklahoma City and then lobby to abolish the three-point shot.

Hedge funds and other investment firms are playing that very game in Washington, D.C., these days. Recently, Capitol Hill has seen a blitz of lobbying on how Puerto Rico should handle its debt amid fiscal disaster, and how Treasury should deal with private investors in bailed out government-sponsored enterprises Fannie Mae and Freddie Mac.

Behind the barrage of lobbying, op-eds and public relations is a handful of hedge funds who have gambled one way or another on GSE stock or Puerto Rican debt, in the hope that they could pull enough strings in Washington to make big bucks.

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Investors allocating capital according to which policy tweaks they think they can win doesn’t sound like the type of capitalism that maximizes economic efficiency. It’s just public-policy profiteering.

As government gets involved in more parts of the economy, hedge funds will increasingly engage in this public-policy profiteering. This will make lobbying on these arcane issues more common and more intense.

So maybe it’s a good time to be long on K Street.

Puerto Rico’s debt, Fannie Mae’s stock, and public-policy profiteering

Ozymandias

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Crony Capitalist Supports Crony Poltico

Politically connected billionaire investor Warren Buffett has been unwavering in his support for millionaire presidential candidate Hillary Clinton, but this weekend Buffett pledged to go to greater lengths to get his fellow 1-percenter elected.
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[Hillary] Clinton endorses subsidies for green energy, and [Warren] Buffett is positioned to profit from such subsidies. Clinton opposes the Keystone pipeline, which could make Buffett’s railway more profitable. Hillary supported the Wall Street bailout, which directly benefited Buffett. Hillary is on board with Buffett in supporting the death tax, which has meant much profit for Buffett — he owns part of a life insurance company, and he’s bought profitable businesses whose owners were forced by to sell because of the death tax. Buffett is invested in ethanol giant Archer Daniels Midland, and Clinton supports federal ethanol mandates.

Clinton and Buffett: It’s a good match.

Politically connected billionaire financier to campaign for politically connected multimillionaire candidate

See also:
– “The Crony Capitalist Pretense Behind Warren Buffett’s Banking Buys

Warren Buffet tag on AgainstCronyCapaitalism

– “Warren Buffet Reaps Crony Capitalist Billions from Gov Bank Bailouts

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“Pro-Business” is NOT Pro-Market

Instead of being “pro-business,” policy makers should aspire to be “pro-market,” eschewing both targeted punishment and targeted privilege.

‘Pro-Business’ Is Bad Business for the Middle Class, by Matthew Mitchell

Being “pro-business” is crony capitalism in disguise and rewards the Clerisy and the political class. Free markets are all about voluntary cooperation.

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The Kronies!

Introducing General Surgeon, The Team Medic!

The Kronies: Laughing All The Way to the Export-Import Bank!

This description could easily be about crony capitalists, the Clerisy, and the political class: The resiliency of Silly Putty, without the fun.

Hurray for Crony Capitalism!

We need more happy warriors!

In world filled with screaming partisans, we feel that there is a need for playful and thoughtful content that tackled important subjects.

John Papola

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We need a fat president, not President Finger Wagger.

We need a fat president. Or at least one who rarely thinks and never speaks about how he looks in jeans. And one who doesn’t spend his day testing his wits against a Hollywood stoner or bantering with Ryan Seacrest while a European ally is being pummeled by Russia. And one who would rather spend his time working than working out, even if it means putting on a few pounds.

Bret Stephens

What we have is the Moral Preener in Chief. President Poofter. President Finger Wagger.

I didn’t build that! Says President Smartest Guy In The Room. President Self Esteem.

Russia Sanctions Fail to Soothe Poland’s Frayed Nerves

Hmm, wonder why….

Forward!

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Mockery, Truculence, and Minimalist Living = Irish Democracy

President Blah Blah Blah, President Poofter

There are many who have expressed the opinion over the years that the United States should go down some sort of “revolutionary” road. The topic has come up repeatedly in various areas of what was Tickerforum and I have repeatedly slapped it down, noting that only a fool who pays no attention to history pines for such a thing irrespective of how bad you may think the situation is.
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Folks, the simple fact is that odds are 100:1 you’re going to get a bad result when you go down the road of violence. There are far too many people who think that when you take such a path you get a Thomas Jefferson moment.

The fact is that most of the time what you actually get is a Pinochet moment.

There are many means of non-violent action, including but not limited to withdrawing your consent by working less and reducing your footprint — and thus the ability of government to sustain its own size.

That’s lawful, by the way.

What raises my eyebrows are those who argue that this sort of perfectly-lawful choice will never work because the people won’t do it, yet at the same time they want to make noise about committing violence. Well, not only will most people not go along with that, but in addition the odds of a good outcome from getting involved in violence are much smaller than the odds from taking lawful and peaceful action instead!

Ukraine: A Warning To Those Who Are Fools

Irish Democracy

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The Crony Class Includes the Political Class

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Academic Capitalism is Crony Capitalism

1. It’s not about college, it’s about college-for-all.
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2. How do you calculate a college wage premium?
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3. So, what policies might add marginal students in a productive manner?
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4. By the way, what do basic descriptive data say about college students?
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5. If college is sometimes just “signaling,” what are the policy implications?
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6. Charts!
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There are reasons to think that some people might benefit from more education than they’re getting now. But at the same time, there remain reasons to be highly skeptical of the push to dramatically expand college attendance.

When Is College Worth It?

Ai yi yi. And he wants more subsidies and even less of a free market in education. Higher ed is already mostly “non-profit” and free of burdensome taxes, and funded with government money in the form of grants and student loans.

This same industry, despite its legal status as a public charity, is today driven by motives indistinguishable from the profit-maximizing entities traded on the New York Stock Exchange.

The coming of “academic capitalism” has been anticipated and praised for years; today it is here. Colleges and universities clamor greedily these days for pharmaceutical patents and ownership chunks of high-tech startups; they boast of being “entrepreneurial”; they have rationalized and outsourced countless aspects of their operations in the search for cash; they fight their workers nearly as ferociously as a nineteenth-century railroad baron; and the richest among them have turned their endowments into in-house hedge funds.

Now, consider the seventeen-year-old customer against whom this predatory institution squares off. He comes loping to the bargaining table armed with about the same amount of guile that, a few years earlier, he brought to Santa’s lap in the happy holiday shopping center. You can be sure that he knows all about the imperative of achieving his dreams, and the status that will surely flow from the beloved institution. Either he goes to college like the rest of his friends, or he goes to work.

He knows enough about the world to predict the kind of work he’ll get with only a high school diploma in his pocket, but of the ways of the University he knows precious little. He is the opposite of a savvy consumer. And yet here he comes nevertheless, armed with the ability to pay virtually any price his dream school demands that he pay. All he needs to do is sign a student loan application, binding himself forever and inescapably with a financial instrument that he only dimly understands and that, thanks to the optimism of adolescence, he has not yet learned to fear.

The disaster that the university has proceeded to inflict on the youth of America, I submit, is the direct and inescapable outcome of this grim equation. Yes, in certain reaches of the system the variables are different and the yield isn’t quite as dreadful as in others. But by and large, once all the factors I have described were in place, it was a matter of simple math. Grant to an industry control over access to the good things in life; insist that it transform itself into a throat-cutting, market-minded mercenary; get thought leaders to declare it to be the answer to every problem; mute any reservations the nation might have about it—and, lastly, send it your unsuspecting kids, armed with a blank check drawn on their own futures.

Academy Fight Song

“We do see pressure on small private colleges as a group and that’s primarily because they don’t have a lot of different things they can do, so they are primarily dependent on tuition revenue,” said a Moody’s analyst, Edie Behr.

Moody’s has pointed out the fiscal dangers of colleges relying on a small number of revenue streams.

Downgrading Elite Colleges

Boo hoo.

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More Crony Capitalism Masquerading as “Public Service”

These columns recently interrupted the coronation for Ron Binz to become one of President Obama’s key energy regulators, and apparently reporting on his record is a violation of Capitol Hill decorum. We’re happy to have the story to ourselves because there is so much more that Senators ought to scrutinize before they vote on his nomination this fall.

“Ron Binz’s Rules for Radicals” (July 30) questioned his fitness to lead the Federal Energy Regulatory Commission, or FERC, whose narrow mandate involves interstate energy transmission and protecting the U.S. electric grid’s reliability and affordability. The White House wants to conscript FERC for the climate wars—and now environmentalists and crony capitalists are teaming up to install their man inside this supposedly independent body.

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Our New Aristocracy and The Little People

The New Aristocracy includes our political class and its hangers on, crony capitalists, most bureaucrats, “public servants” like Eliot Spitzer, “celebrities”, most journalists, “the media”, limousine liberals, big banks, Wall Street, most academics, public employee unions, race hustlers, diversity “trainers”, “environmentalists”, and “progressives” of all stripes.

One of the strangest things about the modern progression in liberal thought is its increasing comfort with elitism and high style. Over the last 30 years, the enjoyment of refined tastes, both material and psychological, has become a hallmark of liberalism — hand in glove with the art of professional altruism, so necessary to the guilt-free enjoyment of the good life. Take most any contemporary issue, and the theme of elite progressivism predominates.

Liberal Apartheid

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