Capitalists organize the factors that produce things. Since “they” buy the factors in the marketplace, they own the means of production, which includes the workers. If the workers strike there is a market alternative to control the price. This is what trade agreements are for, organizing to ensure free-market mechanics effectively controls for the price, driving prices down to increase income.
The effective means of controlling for price to increase income can also be ensured to work for the workers, which then also works to stabilize the expectation of “volatile market prices due to low liquidity” (i.e., big swings in market prices due to concentration of income in the top-income class).
Volatility figures the fear factor. It demands futures products to predict prices forward. Now, in the twilight of capitalism, we have large-scale factories of fear, configured to induce what appears to be a natural-risk ontology that just can’t be avoided, which is the TBTF (gamma-risk) dimension.
In the TBTF dimension, we pay the ransom (tribute to the job creators) or pay the consequences–global financial collapse (and the end of capitalism). Paying the protection payment is not to protect me and you from the risk of default, but to save capitalism from itself. (See articles by griffithlighton on the retributive value.)
Default is just fine for me and you. It is the opportunity to exploit the harm done (the cost) and turn it into a profit (the benefit). The trick is to keep the cost from exceeding the benefit (keep the risk from going gamma) in all the futures, which is managed in the large-scale factories of fear, described as TBTF banks that work real hard to produce the risk to be avoided on demand in the marketplace.
What’s the moral hazard, here?
About six months ago, TBTF banks, and other designated SIFIs, failed the “living-will” test of the resolution authority. FSOC reports today that five of the largest banks still fail the test. Since the factories of fear figure more than half the nation’s GDP, expecting failure in a TBTF proportion is the apparent standard that yields to the proper ethical proportion of free-market economics, which is the deconsolidation of the risk Sanders will be sure to execute in priority.
Although deconsolidation will benefit everybody, Sanders is seen by Wall Street as being the worst candidate for market performance. This means that Wall Street intends the full detriment of the default condition, which is the economic desperation people know to measurably exist as “the angst” of what Objectivists describe as our “natural identity”–naturally yielding to “objective reality” and the only measurable moral standard existing on demand in the free marketplace, naturally factoring the fear to be avoided by default.
The measurable power of the angst is so big that it easily goes gamma, utilizing all the tricks of the trade to prevent it, yielding to the natural standard of existence, on demand, in priority.