Naked Capitalism has published the article Meet the “New Koch Brothers” – the Hedge Fund Activists Wrecking America’s Green New Deal.
I have been screaming about the fire that is ravaging our economy, but I have my doubts that the message is getting through to many people. Naked Capitalism has an article that lays out one big part of the problem. I’ll tease you with this excerpt from the end of the article.
Now that we understand the activist predator problem, what is the solution? Meaningful plans to fight climate change require money – though they cost less in terms of resources and human misery than what’s coming if we don’t act. Nevertheless, as taxpayers we want our money spent wisely. If a company is going to get special status and funding in a Green New Deal, then we’d rather not see our hard-earned cash ending up funding a party for Donald Trump or exotic birds for Nelson Peltz.
Lazonick recommends that if the government wants to partner with a company to develop and produce climate change-fighting technology, the following rules should apply:
Yes, this funny business on Wall Street is what is funding my retirement. My only excuse is that if this is the way the big money people want to set the rules, I can learn to play by those rules. I’d prefer to play by a better set of rules, but I can’t fight the oligarchs with my piddly fortune. I can fight them through politics, while I play the economics game their way.
The article explains that there are entities in the world that know the value of what the Hedge Fund Activists want to sell. They are willing to pay good money to buy what the USA Hedge Fund Activists don’t value. We can’t blame China, Taiwan, Japan, and South Korea for having a different perspective on what to value. If they are right, and we are wrong, maybe we should learn something.
Even Ayn Rand’s protagonists were the type of capitalist that took pride in building something. Today’s rentier capitalists only want to make money. Making money by playing investing games is far easier than building innovative companies.