Get your TARP on, and watch the money flow.
Turning net worth into toxic assets! That’s worth while, isn’t it?
Now that we are in a slow-recovery mode, asset management is now a matter of watching “the money flow.” Capital is gained where it flows. So, if you know where you are going to flow the money, you pre-dict the capital gain. (Whew…that was hard!)
What does producing toxic assets demand? It demands containment–regulation, which is a function of bureaucratic authority, existing on demand. The regulatory authority exists because the marketplace demands it. It’s not neutral. It is full of positive value. The liability is fully funded for the public good, which gives the TBTF proportion its coercive power (referred to as “risk flow”).
Wall Street, however, says government regulation produces negative externalities–toxic waste–while Wall Street operates (without Glass-Steagall) to produce toxic assets. “They” (“the makers”) should be able to do massive harm, sit back, and watch the money flow to contain the risk in a TBTF dimension; and then be paid massive, annual bonuses for doing such a good job, shouldn’t they?
What’s the adjustment that needs to be made here, and who is likely to make it, Hillary or Bernie?