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Unsportsmanlike Conduct

October 14, 2013

As most of you know, I have argued that the monetary/economic policy game is so twisted that those who are responsible for the financial meltdown seem to be benefiting from the meltdown while the taxpayers and savers (the biggest savers being pension funds) are paying an enormous price for the Wall Street calamity. The zero-interest rate policy, bailouts, TARP, QE 1, 2, 3,… are all skewing natural free market reactions and creating colossal moral hazards. After reading this article by Matt Taibbi, one can only conclude that in our financial markets these days there are cheaters who seem to be winning and then have the gall to point their fingers at the victims of their fraud and proclaim that they, the real losers, are the cause of the greatest malfeasance our nation has ever seen. The Wall Street firms that created the 2008 financial crisis should have been bankrupt by now. Instead they have been bailed out and given eternal life through the too-big-to-fail Fed doctrine. In my opinion, they have forever damaged our investment complex, which will forever affect investment returns and which will forever affect large and small institutional investors (pension funds, endowments, benefit trusts and the average 401K saver). And unfortunately, there are no referees willing to throw a flag for unsportsmanlike conduct!

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