Maybe I’m the last person who’s hearing about the Citigroup “plutonomy memos”, but they’re blowning me away. Wait, now that I look around. The full report is available here MarPlutonomy-Report-Leaked-Citigroup-Memo-Part1. In , Citigroup came out with a brochure for investors called “Plutonomy: Buying Luxury, Explaining Global Imbalances.” It urged investors.
|Published (Last):||3 February 2012|
|PDF File Size:||20.80 Mb|
|ePub File Size:||18.38 Mb|
|Price:||Free* [*Free Regsitration Required]|
Plutonomy and the Precariat
Wait, now that I look around, I see that Yves Smith at Naked Capitalism posted about this on October 15,almost three years ago, and called for people to protest plutonkmy annual meetings of the American Bankers Association. We project that the plutonomies the U.
Nothing that surprising, economically speaking, except for maybe the fact that their reaction, far from being outrage, is something bordering on gleeful. Low-end developed market labor might not have much economic power, but it does have equal voting power with the rich. A third threat comes from the potential social backlash. To use Rawls-ian analysis, the invisible hand stops working.
Perhaps one reason that societies allow plutonomy, is because enough of the electorate believe they have a chance of becoming a Pluto-participant.
Why kill it off, if you can join it?
But if voters feel they cannot participate, they are more likely to divide up the wealth pie, rather than aspire to being truly rich.
Could the plutonomies die because the dream is dead, because enough of society does not believe they can participate? The answer is of course yes. But we suspect this is a threat more clearly felt during recessions, and periods of falling wealth, than when average ditibank feel that they are better ,emo.
There are signs around the world that society is unhappy with plutonomy — judging by how tight electoral races are. But as yet, there seems little political fight being born out on this battleground. Interestingly, they also say this:.
The population at large might still endorse the concept of plutonomy but feel they have lost out to unfair rules. memi
In a sense, this backlash has been epitomized by the media coverage and actual prosecution of high-profile ex-CEOs who presided over financial misappropriation. To this end, the cleaning up of business practice, by high-profile champions of fair play, might actually prolong plutonomy. This is what Dodd-Frank has done, to some extent: What bothers me most about this is that Obama is doing very little about it.
He has the same cadre of economic advisors as GWB and they have convinced him that the financial industry can patrol itself with no need for any significant new regulation. Speaking of inequality, you did highlighting that Gangnam clip from Korean in a much earlier post, which was great fun by the way!
Their strategy seems to be rather short-sighted. Perhaps that is their vision of a growth sector. The name is familiar.
I checked all the stocks listed in the documents. Ralph — you need to do a bit more of that checking.
Plutonomics – The Wealth Report – WSJ
The rich have come back richer than ever. The GFC resulted in massive transfers of dollars from ordinary taxpayers to the wealthy via the bail-outs when the big financial institutions momentarily embraced socialism. Init was times. This equal voting power seems to be a pretty serious concern for their plans. They go on to say: Interestingly, they also say this: Finally, from the third memo: Lest we wonder who inititated class warfare.
OWSfinancerant. Screw democracy, long live the plutocrats. Follow Blog via Email Enter your email address plutoonomy follow this blog and receive notifications of new posts by email. Top Blog at WordPress.
Post was not sent – check your email addresses! Sorry, your blog cannot share posts by email.