That’s the analysis of Peter Schiff, president of Euro Pacific Capital: “It’s good to be a banker.” With the DC self-created financial crisis of the moment, it seemed like a good time to consider a bit of the context of the Super Sequestration sequel to Fiscal Cliff, Grand Bargain, etc.
The video below is of Schiff’s recent interview with RT’s Liz Wahl:
As the US economy continues to struggle, Wall Street is recovering quite nicely. Back in 2008 the markets crashed and taxpayers were used to prop up the private financial sector. But according to the numbers, 2012 has become the second best year for profits for many key financial institutions. Many are now wondering if the banks should be forced to pay back the tax payers.
It’s good to be a banker.
Another perspective, from a February 7, 2013, still relevant article by Peter Radford at Real World Economics. Radford cites a New York Times article which summarized the results of Rutgers University survey.
The main thrust of the article is that this crisis was both deep and broad enough to involve almost eighty percent of the population in one way or another. Unemployment and its awful effects were that widely felt. People’s lives were often ruined permanently. The entire trajectory of some people’s lives will be changed forever. The damage is incredible. The downdraft from Wall Street’s extraordinary greed driven stupidity caught almost all Americans and has left enormous psychological as well as material scars.
Yet we still have not dealt with the causes and have not undertaken strong remedial action.
The sequestration stupidity — the Electeds can’t even manage to scare themselves into taking responsible action — fits with their failure to deal with “the causes” or take “strong remedial action” regarding the financial crisis.
Our elite, those people who make the key policy decisions in both the public and private sectors, and those who shape the discussion in the media and academia, are divorced from the reality that the Rutgers survey exposes.
Our elite may live in America, but it is not of America.
This leads to a profound separation.
The elite lives a life and inhabits a network that excludes the rest of us. … It was largely protected from the crisis and thus could see it more as an academic exercise rather than a raw everyday experience. It still fails to understand the erosion of opportunity that most Americans feel because its opportunities exist elsewhere.
It’s good to be an Elite.
Our’s speaks finance. … It occupies the credit side of the balance sheet. Which is why it is pre-occupied with debt levels, interest rates, fears of inflation, protecting the banks, and increasing profits. It doesn’t perceive itself as being part of the ‘wage’ economy, so wages are unimportant. Nor are jobs. After all, it imagines, there are always jobs if the wages are low enough to justify hiring someone. If only workers didn’t want so much, there would always be jobs. …
The elite is still spewing out policy solutions that seem fine within its bubble but have no relevance outside.
It’s good to be among the Relevant.
Among a multitude of enormous benefits, it relieves one of the necessity of concern about the 99-or-so-percent who live on the downside of income inequality. You have the mostly untaxed luxury of worries only an Elite can understand. And maybe an Elected, who you’ve hired to manage the government for you. (emphasis added)
(The Elite) worries about debt when there is no reason to.
It worries about inflation even when there isn’t any.
It worries about profits even when they are historically high.
It protects the banks even when they mess the economy up.
It cares about immigration only to the extent it provides skilled workers.
It cares about health care only because it is an expensive benefit to provide to workers.
And it cares about workers only if they are cheap, and, well, do work that the elite needs done.
This is what we get for having an elite that lives in America, but is not of America.
Rotten policy and irrelevant policy debates about artificial crises.
We need jobs. And we need growth. Our elite is failing to deliver either.
It’s good to be in the ruling Oligarchy.
(Dance of the Oligarchy via Occupy Posters)