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Posts Tagged ‘rent seeking economy’

Simon Johnson’s Sense on Cents Classic

Posted by Larry Doyle on September 17th, 2013 9:15 AM |

On a daily basis we now get fed less than comprehensive if not fully distorted views of the last 5 years by an array of politicians, industry sponsored economists, and assorted other puppets.

While the airwaves and other outlets are filled with much of this noise, let’s take a step back so we can get the wide-angled view as to what has really transpired within our nation and the global economy. To do so, lets check in with Sense on Cents Hall of Famer Simon Johnson who provided a prescient view as to what was — and is — really going across a wide swath of our economic landscape.

In a Sense on Cents “past is prologue” classic, Johnson wrote back in 2009 in The Atlantic:  (more…)

GS, JPM, MS et al: No Longer Just Banks

Posted by Larry Doyle on July 10th, 2013 7:49 AM |

Can we all agree that banks that are too big to fail, regulate, and prosecute are also too big to exist? That premise strikes me now as a foregone conclusion.

But how have the banks gotten bigger? It is not merely via the issuance of home mortgages, credit cards, corporate loans, and some derivatives transactions.

The new rent-seeking, market manipulating economy that is coming to define the American landscape is reflected in a host of other ways. Should we even call these institutions banks anymore?  (more…)

What Did Bernanke Really Accomplish?

Posted by Larry Doyle on June 21st, 2013 8:23 AM |

How will the history books treat Ben Bernanke? Well, only time will tell.

Supporters will tout his integral role in saving the system.

Those who look less kindly on the Fed chair will denigrate him for: 1) his participatory role in allowing Wall Street to bring our economy to its knees, and 2) providing excess liquidity for the well positioned to take advantage of a newly defined rent-seeking economy while the rank and file American public struggle to keep their head above water.

Perhaps he is deserving of both a measure of praise and derision, but let’s take a harder look at what he really accomplished — or not — depending on how you might view things. (more…)

Uncle Sam’s Rent-Seeking Economy circa 2013

Posted by Larry Doyle on May 29th, 2013 5:22 AM |

Are we in the midst of the greatest transfer of wealth in modern times?

I will allow others to debate the merits of that question, but I propose it in order to address what I see increasingly as the “new normal” reality of our current economic condition here in the United States. What lies at the core of this new normal dynamic? A rent-seeking economy, defined as:

When a company, organization or individual uses their resources to obtain an economic gain from others without reciprocating any benefits back to society through wealth creation.

An example of rent-seeking is when a company lobbies the government for loan subsidies, grants or tariff protection. These activities don’t create any benefit for society, they just redistribute resources from the taxpayers to the special-interest group. (more…)






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