President Obama wants the world to know that he takes it personally that the Democratic Party’s base opposes his latest effort to sell out the people of the world to the worst corporations through the infamous Trans-Pacific Partnership (TPP) deal.
In the last two days, the New York Times’ website has published a blizzard of six article about deflation, several of them focusing on the European Central Bank (ECB).
The Financial Crisis Inquiry Commission (FCIC) report described one of three epidemics of accounting control fraud that drove the financial crisis in these terms.
Peter Henning, in his self-bowdlerized Dealbook feature he branded as “White Collar Watch” (note his deletion of the word “crime”) has come up with an article that illustrates that the New York Times is clueless about bank regulation.
Does anyone seriously think that Dudley would take a job as a regulator subject to federal pay caps? If the President or Congress ends the conflict of interest Dudley will scurry back through the revolving door to Government Sachs before the law becomes effective.
The NY Fed and Goldman have combined again to produce fingers scraping on a moral blackboard. The story is – not – told coherently in a NY Times piece.
As financial regulators we have been warning since 1984 that accounting control fraud is optimized by modern executive compensation. Modern executive compensation is so perverse that it creates overwhelming incentives to engage in fraud and the means of committing the fraud that makes it far more difficult to prosecute. The CEO is able to convert the firm’s assets to his own benefit through seemingly normal corporate mechanisms. CEOs also use executive and professional compensation to generate “Gresham’s” dynamics and incentivize fraud by employees, officers, and professionals.
Wall Street’s full depravity was put on display in Joseph Fichera’s November 6, 2014 op ed in the New York Times.
Kilkenomics, being a festival of economists and comedians, has long reflected the economic consensus that austerity in response to a Great Recession is economic malpractice akin to bleeding a patient to make him healthy.
The news in Europe (I’m in Kilkenny, Ireland participating in Kilkenomics V) is filled with coverage of the latest travesty of the Troika – a leak disclosed the “let’s make a (secret) deal to virtually eliminate your corporate taxes” practices of Luxembourg under the reign of Jean-Claude Juncker.
