Finance and the GOP in bed together…
Crossposted comment on Dkos:
about 8% of the US GDP, somewhere around $1.2 to $1.8 trillion is sitting idle on the sidelines right now.
Idle. Uninvested. Useless.
Bloomberg is rent collecting here (see the diary). There’s plenty of money out there for R&D, expansion into new markets, plant and process improvement, efficiencies. But nobody in control of this captal is doing anything with it.
Partly because of a structural weakness on Wall Street, who insists on placing bean counters in control of companies, who are concerned with investor ROI, rather than those with an intimate knowledge of the products, processes and the markets these products serve. Their real expertise is in rent collection, not business (two different skill sets). Chrysler was almost done in by these people. Dennison, some company whose name I can’t remember, but who fabricated engine gaskets, etc, etc, etc . . . all driven to the brink by the archtypical Harvard MBA who knows nothing more than how to work a spreadsheet.
This is nothing new.
Another reason is political. Traders Uri Landesman and Jack Reutermann came right out and said it on CNBC: traders were waiting for the GOP to take back Congress this November. They are ensuring that there will be no job growth to help along a republican victory. Call it CT if you want, ban me if you want, but we’ve all seen worse business climates than this in which companies were still fighting for market edge and investing in growth. I cannot think of another valid reason for this – real businessmen know that you do whatever it takes to survive and prosper, but then bankers and traders are not businessmen at all and they’re holding all the cards.