Monday, July 21, 2008
Yves Smith on Jim Grant
Yves Smith wrote a 19 July 2008 post about Jim Grant's (JG) WSJ essay worth reading, the link: www.nakedcapitalism.com/2008/07/jim-grant-why-no-outrage.html. JG writes, "I have another theory, and that is that the old populists actually won. This is their financial system. ... The Populist Party might have lost the elections in the hard times of the 1890s. But it won the future. ... Wall Street ... shares precious few characteristics with the metal-fastener business or the auto-parts trade. ... Rather, they open their doors to pay their employees--specifically, to maximize employee compensation in the short run".
JG explains what's going on. He offers no solution. Why? Americans can't handle the truth. We bail out financial institution executives to ensure they keep their seven and eight figure bonuses. Crazy. If these guys are so smart, why can't they manage their own companies without federal aid? Why should they make any more than civil servants?