{"id":45121,"date":"2019-04-07T10:20:28","date_gmt":"2019-04-07T15:20:28","guid":{"rendered":"https:\/\/olduvai.ca\/?p=45121"},"modified":"2019-04-07T10:20:34","modified_gmt":"2019-04-07T15:20:34","slug":"market-commentary-faux-statesmanship","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=45121","title":{"rendered":"Market Commentary: Faux Statesmanship"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"http:\/\/creditbubblebulletin.blogspot.com\/2019\/04\/market-commentary-faux-statesmanship.html\">Market Commentary: Faux Statesmanship<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">April 5 \u2013 New York Times (Dealbook): \u201c\u2019It doesn\u2019t take a genius\u2019 to know capitalism needs fixing. Capitalism helped Ray Dalio build his investment empire. But in a lengthy LinkedIn post, the Bridgewater Associates founder says that it isn\u2019t working anymore. Mr. Dalio writes that he has seen capitalism \u2018evolve in a way that it is not working well for the majority of Americans because it\u2019s producing self-reinforcing spirals up for the haves and down for the have-nots.\u2019 \u2018Disparity in wealth, especially when accompanied by disparity in values, leads to increasing conflict and, in the government, that manifests itself in the form of populism of the left and populism of the right and often in revolutions of one sort or another.\u2019 \u2018The problem is that capitalists typically don\u2019t know how to divide the pie well and socialists typically don\u2019t know how to grow it well.\u2019 \u2018We are now seeing conflicts between populists of the left and populists of the right increasing around the world in much the same way as they did in the 1930s when the income and wealth gaps were comparably large.\u2019 \u2018It doesn\u2019t take a genius to know that when a system is producing outcomes that are so inconsistent with its goals, it needs to be reformed.\u2019 Stay tuned: Mr. Dalio says that he\u2019ll offer his solutions in another essay.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I\u2019m reminded of back in 2007 when Pimco\u2019s Paul McCulley coined the term \u201cshadow banking\u201d \u2013 and the world finally began taking notice of the dangerous new financial structure that had over years come to dominate system Credit. Okay, but by then the damage was done. As someone that began posting the \u201cCredit Bubble Bulletin\u201d in 1999 and had chronicled the prevailing role of non-bank Credit in fueling the \u201cmortgage finance Bubble\u201d fiasco (on a weekly basis), it was all frustrating.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market Commentary: Faux Statesmanship April 5 \u2013 New York Times (Dealbook): \u201c\u2019It doesn\u2019t take a genius\u2019 to know capitalism needs fixing. Capitalism helped Ray Dalio build his investment empire. But in a lengthy LinkedIn post, the Bridgewater Associates founder says that it isn\u2019t working anymore. Mr. Dalio writes that he has seen capitalism \u2018evolve in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[111,7756,16861,25555,13781,7888,14180],"class_list":["post-45121","post","type-post","status-publish","format-standard","hentry","category-economics","tag-capitalism","tag-credit-bubble-bulletin","tag-doug-noland","tag-paul-mccully","tag-populism","tag-ray-dalio","tag-wealth-disparity"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45121"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45121\/revisions"}],"predecessor-version":[{"id":45122,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45121\/revisions\/45122"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}