A Culture of Corruption
by Captain Hook
Mon, 24 Jan 2011
It’s a funny thing – actually it’s not so funny for the poor lost and trusting souls that give their money to the crooks in New York to manage – but for some strange reason (greed) managed account returns don’t seem to even come close to those enjoyed by money managers today, not even after a good year like 2010. And this is especially true if you include the fact that if money managers have a bad year, or worse, where they may go out of business, our central planners (and central banks) step in and bail them out, and executives at these companies are still paid fat bonuses which is all gravy (for screwing up), never mind a return on investment. This hardly seems fair considering most investors (especially the little guys) are never bailed out, but it’s your own fault if you allow it to happen in knowing all too many of these characters take untenable risks with your retirement dreams because to them it’s other people’s money within a culture of corruption – and they simply don’t give a damn because they know if trouble arises a bailed out would come – which accounts for the orgy of risk taking on Wall Street these days.
Yup – it’s a consequence free environment for the big money managers these days, where the bigger you are (not the harder you fall) the bigger the bailout related bonus you can expect for screwing up next year. It’s bureaucracy at it’s finest, and if you are lucky (crooked) enough to be in its upper echelons, which we will call the bourgeoisie (a culture of corruption), then you get to go shopping at Louis Vuitton and drink Cristal, while the have-nots have ever less. This is why I find the babbling idiots on CNBC so funny when they question why retail investors don’t return to the stock market. I don’t think they see themselves or what they are doing. They think they can game anybody because the government and the bourgeoires continue to do it. But what they fail to realize is the economy is not so great outside of New York, and that at some point this will become evident even to them, not to mention the bourgeoires. Hopefully for them we won’t have a repeat of what happened in the French Revolution – no? If this past weekend is any indication however, this might just be wishful thinking on their part(s).