Week 2, February 2010
Commenting on the $9 million pay for Lloyd Blankfein, CEO of Goldman Sachs, and $17 million pay for Jamie Dimon, CEO of JP Morgan/Chase, President Obama was quoted as saying: “I know both those guys. They’re very savvy businessmen. And I, like most of the American people, don’t begrudge people success or wealth. That’s part of the free market system.” Evidently, he pointed out that some baseball players make more than that— as if that should assuage any of us who take issue with this perspective. On the latter point, should we point out to President Obama that BASEBALL PLAYERS WERE NOT BAILED OUT BY THE TAXPAYER!?!?
On the former point, it’s more than well-known that these “savvy businessmen” turn money into more money. That’s what they do. And without question, in 2009 they took the opportunity they had and brought home some handsome profits for themselves and for their shareholders. Bravo. But, let’s not confuse this with the “Free Market”. In a free market, these guys would all be the FORMER heads of the FORMER investment banking titans of the United States. In a truly free market, if the government wanted to pour billions of dollars into bailouts, maybe it could have given that money to the consumer (with conditions, of course) so that THE CONSUMER could choose FREELY to whom they wanted to give their business. In that model, the free-market model, the commercial banks are competing, are probably lowering prices and innovating products, and are probably touting their superior customer service to win YOUR business. Arguably, some smaller banks would have a chance in that game as well. Savvy? (As Captain Jack Sparrow would say.)
What we have instead is a top-tier banking system that’s been resuscitated by taxpayer funding. Maybe it was a matter of national security, and if so it’s understandable to that end. But we have a system that remains unchanged with regard to the regulation of derivatives and with regard to separating federally-insured banking from speculative investment banking. And we have a massively re-funded government lobby for that same top tier that has just posted record profits for 2009. It adds up to little change, if any, from the status quo if the top tier has its way. Now that’s savvy, Dr. Evil style.
And lastly, well over a year after the inception of TARP $30 billion from the fund is being allocated to community banks to aid in small business lending that the top tier evidently is not finding ways to accommodate? Interesting. If it was patriotic to save the top tier of banks— national security and all that— then what is patriotic about a top tier that cannot accommodate the needs of small business? Who was it that saved them again? Free market? Baseball players? You tell me.
See here for more about what incomes your top tier bankers made in 2009.
To contact me about financing your dream-home click here.
Weekend Wanderer’s Events
…finding the treasures in your town and beyond.
Two for This Weekend:
Lunar New Year Flower Market in SF: To celebrate the Year of the Tiger, the San Francisco Botanical Garden Society will host its 11th Annual Lunar New Year Flower Market February 13 in the County Fair Building’s spacious gallery at 9th Avenue and Lincoln Way. Happy Valentines Day, everyone!
Sweethearts for Seva: Celebrate Valentines Day with an evening of musical duets featuring the legendary Joan Baez & Steve Earle, David & Tracy Grisman, Tuck & Patti with host Wavy Gravy. “Sweethearts for Seva”, Sunday February 14th at Bimbos 365 Club, a benefit for Seva Foundation. For more than thirty years Seva Foundation has served people around the world who are struggling for health, cultural survival and sustainable communities.
Help Your Fellow Living Beings:
ValenFaas Day on Park Street in Alameda: The Friends of the Alameda Animal Shelter (FAAS) invite you to their St. ValenFaas Day Event Friday February 12th from 6:00 to 10:00 pm, on Park Street. Come and dine and shop for Valentines Day gifts at Books Inc., Daisy’s, Three Wishes and Tomatina’s. A portion of your purchase will be donated to FAAS which provides help for the homeless animals in the City of Alameda Animal Shelter.
Two Weekends from Now:
2010 SF Chronicle Wine Competition Public Tasting: From the Chronicle: February 20th at Fort Mason in the city by the Bay! Known as the largest competition of American wines in the world, the event invites guests to sample hundreds of award winners, each selected at the Annual Judging earlier this year, and delicious food for an afternoon of pure indulgence at THE social event of the season.
Pic of the Week… from my phone camera:
I’ve been reading their book, so this one’s from Nepenthe, in Big Sur