<p>I think your analysis is reasonable and well thought out. I just get instantly annoyed every time I hear someone ranting about the 1%. It would be more accurate if they ranted against tax dodgers, or tax policy that allows people to not pay tax on capital gains as income, or hedge fund managers, or those who played fast and loose with other peoples money. But the people who are yelling about the 1% aren’t thinking that deeply, it’s just class warfare that cannot lead to any good and is completely unfair.</p>
<p>I’d better not start a new thread because I have a feeling it wouldn’t last too long. Too many passionate feelings on that one way or another. Though I’m sure somebody else will sooner or later.</p>
<p>You might have something with that blood-sucking-master-of-the-universe, probably not communist though. I always had a suspicion that dstark was from the netherworld.</p>
<p>seriously busdriver: There are some extremely interesting, enlightening and thought provoking links in those threads. They are pretty much “just fact” links, not editorializing of any sort. I learned a whole lot. You might be interested, too?</p>
<p>edit: I don’t know how many of them got deleted</p>
<p>No. I know what you are saying Busdriver. We have a definite problem with crony capitalism and tax loopholes and government favortism which is what these protestors “get” but do not really understand. They are railing against the outcome and what we want to do, if we are smart, is to deal with the actual cause of the problem.</p>
<p>I think that is dstark’s next renovation project. If we are all good (or maybe bad), he might invite us for a visit or at least post pictures. :)</p>
<p>Something else that came up on those threads was the idea of social contract. It feels just and fair to keep our hard earned $$ but, in fact, we only get to keep what society agrees is “fair.” The definition of “fair” is really going to vary depending on your economic circumstances.</p>
<p>edit: I am yelling about the 1% and thinking as deeply as humanly possible. :)</p>
<p>You might change your mind about that if you got between him and a bar of chocolate:)</p>
<p>"Something else that came up on those threads was the idea of social contract. It feels just and fair to keep our hard earned $$ but, in fact, we only get to keep what society agrees is “fair.” The definition of “fair” is really going to vary depending on your economic circumstances.</p>
<p>edit: I am yelling about the 1% and thinking as deeply as humanly possible"</p>
<p>And I suppose that is what we are arguing about, though it seems to be what our politicians believe is adequate to buy votes vs societal views. When you are yelling about the 1%, though, realize you are talking about a group where only 14% of those are in finance. 31% are business owners, 16% are doctors. You only have to make 380K/yr to be in the top 1%, and a bit over 500K to be in the top 0.5%. And plenty of those people pay the max rate in taxes, certainly those who are paid in income. If you combine all the taxes for a family, and people are paying over 30% of their income in taxes, is that not enough? How much is enough?</p>
<p>I am not familiar with the security industry, so a little dumb, but how can MF as a clearing house invest clients money on their own behalf? at 40 to 1 leverage? How wide spread is this practice? Do we really have to look our behind to put money in ANY security firm?</p>
<p>What MF did was illegal. They took clearing client money and either used it to make margin calls on their investments or used it to invest. Regardless, what they did was completely illegal, and I’m talking unambiguously against the law.</p>
<p>The “clients” in this case are traders and brokers, both, who used the company to clear their trades. </p>
<p>One of the issues with the ineffective regulations we have now as opposed to the glass steagall regulations put in place after the 1929 crash, is that there are far too many people who are involved in all aspects of the business all at once, instead of clearly demarcated businesses, and banks simply being in the business of banking…not trading.</p>
<p>It’s too complicated to oversee effectively, imho.</p>
<p>For me bigger question was Corzine will go to jail or not. I got my answer; politicians saved him from going jail even though he broke the rules. </p>
<p>Therefore, the lesson so far I see: if you are poor and you even steal a piece of bread you go to jail. If you are rich and politically connected and still steal half a billion, you are still above the law. </p>
<p>collegeinusa- can you explain this please-For me bigger question was Corzine will go to jail or not. I got my answer; politicians saved him from going jail even though he broke the rules.</p>
<p>Has the investigation into the matter been completed. Have we determined there was a crime and if so who committed the criminal act? I am sorry I must have missed that finding.</p>
<p>This sort of reminds me of when Robert Rubin was advising Citigroup right as it was going under in 2008. Corruption extends even after people leave office.</p>