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News Are Financial Adivsers running the US?

  1. May 10, 2012 #1

    Pythagorean

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    Are Financial "Adivsers" running the US?

    I recently saw "Inside Job" and realized (or was made to "realize") how the same circle of financial advisers has managed to stay in the white house through several presidencies, left or right.

    So while we bicker about left vs. right, it seems that many decisions made by both left and right presidents have this dominant fiscal component to them that tends to favor the financial sector.

    For examples, the foreclosure settlement. Is this really something Obama wanted or is he under immense pressure from the financial sector?

    Is this a real problem we should be confronting?
     
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  3. May 10, 2012 #2

    phinds

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    Re: Are Financial "Adivsers" running the US?

    It seems so to me. I approved of the bailout of both the financial sector and the auto industry, but I think it is shameful the way Obama let the financial people in his administration keep him for forcing any consequences on the wall st organizations that caused the meltdown in the first place. Personally, I was in favor of a firing squad but I would have settled for some jail terms and big fines.

    The "too big to fail" is STILL not in any way addressed, as I understand it, and the whole mess could happen again. Obama has added a massive moral hazzard to the situation by not forcing consequences.
     
  4. May 10, 2012 #3
    Re: Are Financial "Adivsers" running the US?

    The government depends on cheap money to finance their budget. Cheap money is inflationary. The financial sector likes cheap money because it allows them to loan more money. It is an “unholy alliance”.
     
  5. May 10, 2012 #4
    Re: Are Financial "Adivsers" running the US?

    > financial advisers has managed to stay in the white house through several presidencies, left or right.

    Americans are very funny. Do you call everybody, who is scared of communism "a leftist" or "right-winger"? :rofl:


    But you think exactly like a marxist. Do their next step, call your "democracy" a dictatorship of the bourgeoisie
     
  6. May 10, 2012 #5

    Pythagorean

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    Re: Are Financial "Adivsers" running the US?

    I'm not sure I understand your post. Presidents run as republicans or democrats here (even though they are all a little moderate). My point was simply that it doesn't seem to matter which party is in the white house, we still seem to bow to the financial sector.
     
  7. May 10, 2012 #6

    phinds

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    Re: Are Financial "Adivsers" running the US?

    I don't think Americans think much about communism one way or the other any more. It has been proven to be an utterly bankrupt (both morally and financially) philosophy when actually put into practice, so there's nothing to BE afraid of.
     
  8. May 10, 2012 #7

    Pythagorean

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    Re: Are Financial "Adivsers" running the US?

    Maybe he's referring somehow to the buzz-word "socialist"?

    Last time I heard a reference to communism was a vietnam movie.
     
  9. May 10, 2012 #8
    Re: Are Financial "Adivsers" running the US?

    If you dislike communism, you are not left. How do you disprove this statement by reproducing the anticommunist propaganda?

    As part of off-topic, I must say that though it might be unstable, at least in the popular forms it was practiced, it is bankrupt morally only because you are being distorted by capitalist propaganda since childhood. This propaganda teaches that black is white and white is black.
     
  10. May 10, 2012 #9

    Pythagorean

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    Re: Are Financial "Adivsers" running the US?

    I presume your posts presume too much valjok... Otherwise you are being unclear and misinterpreting language.
     
  11. May 10, 2012 #10

    phinds

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    Re: Are Financial "Adivsers" running the US?

    I take it you are a strong believer in communism. Well, good luck with that.
     
  12. May 10, 2012 #11
    Re: Are Financial "Adivsers" running the US?

    Yes, that seems to be the case. "Money, Power, and Wall Street", "Inside the Meltdown", and "The Warning" were interesting also.

    It's a huge lobby, and Obama did fill key positions with people whose past positions/behaviors suggest that they're aligned with the financial sector ... maybe to a fault ... when he could have filled those positions with people who were known to be in favor of reform and regulation and increasing transparency and diminishing the financial sector's percentage of the economy.

    It seems to me to be a problem. How would you suggest dealing with it? Apparently Obama isn't part of the solution, and it seems clear to me that Romney's aligned with the financial sector.
     
  13. May 10, 2012 #12

    Pythagorean

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    Re: Are Financial "Adivsers" running the US?

    But why do presidents continue to do this? It appears to me that it doesn't matter who the president is; like once they sit in the seat, they realize the financial sector's hand was waiting to grab them by the balls.

    Or maybe financial sector was there in the beginning, ensuring presidency to all who would play well?

    Isn't it worth trying to analyze motive when we see a trend like this?
     
  14. May 10, 2012 #13
    Re: Are Financial "Adivsers" running the US?

    You should probably phrase this a bit differently to avoid an infraction. Just a suggestion. But, yeah, your statement has a certain "ring" of truth to it ... to my ear.

    Maybe. Either way it seems pretty clear that the financial sector is exerting a lot of influence on legislative actions and administrative policies.

    The motive is money, imho. The underlying cause is that people are greedy ... at least sometimes. That's just my opinion of course.

    I don't think there's much need to analyze. What can the average American do about it? Not much, imho.

    The good news is that things seem pretty OK across the board for the vast majority of Americans. So, I'm just enjoying the ride for as long as it lasts. It is possible that things in the US can get a lot worse ... for most Americans -- and, imo, if people keep voting for major party candidates, then that's almost assured. But then, what's the alternative? As I mentioned, I believe that we're all somewhat greedy at least sometimes, and sometimes motivated by money to the exclusion of arguably 'higher' goals.

    EDIT: Things like calling and writing elected officials to support actions which minimize the probability that financial players might really mess things up again do help, I think.
     
    Last edited: May 10, 2012
  15. May 10, 2012 #14
    Re: Are Financial "Adivsers" running the US?

    Here is a link to Money Power & Wall Street all four hours of it. It can be viewed one segement at a time.

    http://www.pbs.org/wgbh/pages/frontline/money-power-wall-street/

    I had no idea that the FED loaned money to foreign banks?? It makes it sound like the financial sector running the show isn't just made up of American interests.
     
  16. May 10, 2012 #15
    Re: Are Financial "Adivsers" running the US?

    The news is only good for the bankers who caused the crisis as they are now back to doing business as usual.

    Anyone who bought a home after about 2002 , depending on location, is now underwater. And that includes people who didn't buy more house than they could afford.
     
  17. May 10, 2012 #16
    Re: Are Financial "Adivsers" running the US?

    ThomasT, don't get banned again! Lol

    But when did you figure this all out? This is no new fact. When the government turns to businesses for help, or when your presidential candidates are backed by businesses, and senators are align with businesses, you'll see your country being run by big business. This is nothing new, it is apart of this capitalist society.
     
  18. May 10, 2012 #17
    Re: Are Financial "Adivsers" running the US?

    Not only bankers. Private housing is incredibly expensive infrastructure compared to compact cities of tall buildings, with no place for private cars. But, you need a planned economy to build the economy and eco-cities. Capital cannot benefit from it. Do not blame everything on bankers. Private housing feeds builders, automobile and oil industry. Blame your dreams and capitalist society. It cannot live without cricises. What is more dangerous is that in the race for profits, people devastate the nature.
     
  19. May 10, 2012 #18
    Re: Are Financial "Adivsers" running the US?

    Right ... well, I don't think I've insulted any countries or ethnic groups since my return. It's tough being a gnarly curmudgeon. :smile:

    I think that's pretty much what I said. However, I don't think that questionable business and financial practices are necessarily inevitable. That is, the mass voting public can have a more direct influence than just casting votes once in a while, imo. But it requires actually contacting elected officials via phone, email, letter, or in person to let them know how you want them to vote on various issues. Politicians do like the perks and money that lobbying groups offer, but they also want to get reelected. Maybe I'm just being naive.
     
  20. May 10, 2012 #19
    Re: Are Financial "Adivsers" running the US?

    Yes, it's been inordinately good for some (most?) financial institutions. But it's also been good, or OK anyway, for many businesses and a significant proportion of the populace not involved in finance.

    Eg., my situation, and the situations of most of my friends hasn't been significantly adversely affected by the financial crisis. And none of us are rich. The rate of inflation hasn't unduly increased as far as I can tell, and the vast majority of Americans are employed.

    The unemployment rate seems to be generally declining.

    I'm guessing that home prices will recover (not back to what they were during the bubble maybe, but enough so that tens of millions of homeowners aren't under water) ... in the foreseeable future (that is, within my lifetime ... I'm 65).

    But of course, if nothing is done to prevent or at least minimize questionable practices by financial institutions, then the probability of another serious economic crisis within my lifetime remains uncomfortably high, imo.

    And I think that this is something that individual Americans can influence.
     
    Last edited: May 11, 2012
  21. May 11, 2012 #20

    russ_watters

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    Re: Are Financial "Adivsers" running the US?

    Yes, for the vast majority of the population, the real impact of the financial crisis has been minimal. The people most hurt are the ones who became unemployed (and their families), who probably amount to something like 10% of the population.

    I was hurt slightly by working a few percent fewer hours than "normal" for me in 2008 and by a temporary freeze on raises and benefits at work. But this was mostly offset by tax cuts and a reduction in interest rates - for my mortgage and for the car I'm about to buy. All in all, it is tough for me to characterize a reduction in gains as a loss.
     
    Last edited: May 11, 2012
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