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This is the same whether it is mortgage backed securities or treasuries too. I would consider this faux controversy because exactly what kind of person would b
by vmception 6y ago
This is the same whether it is mortgage backed securities or treasuries too.
I would consider this faux controversy because exactly what kind of person would be a better steward of these decisions. The "revolving door" is funny to see how ridiculous it can get, but really who of the citizenry would be better prepared to steward these organizations? What exactly would the pedigree of that person look like?
The Fed was ALWAYS going to be forced to buy corporate debt as it expanded the universe of eligible assets. This was predictable no matter who at the Treasury negotiated with the Fed that "the time is now".
To me, the only controversy would be the tax implications of the sham transfer of his stakes in his company. But actually, we don't even know if they neglected the taxes and it probably isn't a real issue for them as they'll just report it and try to offset the tax footprint just like everyone else.
If it wasn't corporate debt, it would be mortgage backed securities, or leverage up on treasury bonds, or even higher leverage on currencies. There are always information asymmetries and that isn't controversial, except in single issues of companies in the securities market.
- quxpar 6y agoAfter all, the king is chosen by Divine Right, so who could possibly be better prepared to steward the kingdom?
- 082349872349872 6y agoI didn't know we had a king! I thought we were an autonomous collective.
- yowlingcat 6y ago> The "revolving door" is funny to see how ridiculous it can get, but really who of the citizenry would be better prepared to steward these organizations? What exactly would the pedigree of that person look like? Let's invert your argument on it's head: - No one of the citizenry exists to play this role. Why? - There is nothing stopping anyone who has regulated the system from switching sides to the thing they used to regulate - Therefore, anyone qualified enough will pass through the revolving door and systematically brain-drain the regulatory apparatus rendering it impotent - Therefore, this part of capitalism is able to seamlessly absorb and neutralize any resistance or regulation - Therefore, there is nothing stopping it from absorbing all power and instituting a one party state Don't call pointing out the corruptibility of this system "faux controversy."
- pochamago 6y agoAccurate and undeserving of downvotes
- 1MachineElf 6y agoSometimes the truth hurts, e.g. the downvotes on this.
- arolihas 6y agoMuzinich may be right for this role but he should still properly divest his interests ethically.