DiscussMormonism.com

The ascendancy of the US capital markets —including increasing depth of US stock, bond, and derivative markets — has improved the allocation of capital and of risk throughout the US economy. Evidence includes the higher returns on capital in the US compared to elsewhere; the persistent, large inflows of capital to the US from abroad;the enhanced stability of the US banking system; and the ability of new companies to raise funds. The same conclusions apply to the United Kingdom, where the capital markets are also well-developed.

The development of the capital markets has provided significant benefits to the average citizen. Most importantly, it has led to more jobs and higher wages.

The capital markets have also acted to reduce the volatility of the economy. Recessions are less frequent and milder when they occur. As a result, upward spikes in the unemployment rate have occurred less frequently and have become less severe.

The development of the capital markets has also facilitated a revolution in housing finance. As a result, the proportion of households in the US that own their homes has risen substantially over the past decade.

For countless voters who feel they have been impoverished by a manipulative financial elite, probably the most devastating issue concerns Hubbard’s income sources. When interviewed for Inside Job, Hubbard, whose day job is to teach economics at Columbia University, denied that Wall Street firms and other financial corporations accounted for the majority of his consulting and directorship commitments. Now thanks to new disclosure rules imposed by Columbia, it turns out that, of dozens of consulting, advisory, speaking, and directorship arrangements that have boosted his income over the last decade, at least two thirds have been with the financial sector — including MetLife, KKR, Goldman Sachs, Freddie Mac, JPMorgan Chase, Citigroup, and Bank of America.

This squares oddly with Hubbard’s statement when interviewed for Inside Job: “I don’t do much consulting in the financial services industry. I do have some directorships, but the income from those would be modest compared to my other income.”

“Modest,” it turns out, is a relative term. According to Ferguson, Hubbard’s income from three financial directorships alone comes to more than $700,000 a year. Hubbard’s income from these directorships is disclosed under SEC rules but he is not obliged to disclose other income from connections with more than two dozen other financial services corporations. Ferguson concludes that Hubbard’s total take from the financial services industry is far more than $700,000 a year. Yet in the Inside Job interview, Hubbard implied that he earned more from writing textbooks than from his financial services connections.

I'm surprised this hasn't gotten any attention. I think it's damning.

Or there are more interesting pressing matters like hurricane Sandy.

beastie wrote:I'm surprised this hasn't gotten any attention. I think it's damning.

beastie wrote:I'm surprised this hasn't gotten any attention. I think it's damning.

Analytics wrote:Damning? yes. News? Not at all. Romney is a Wall Street guy who made his fortune in the world of modern finance. Of course he's going to turn to that same crowd for advice.

cinepro wrote:

Analytics wrote:Damning? yes. News? Not at all. Romney is a Wall Street guy who made his fortune in the world of modern finance. Of course he's going to turn to that same crowd for advice.

Then what's Obama's excuse?