Jamie Dimon And The Fall Of Nations | The Baseline Scenario
In the Acemoglu and Robinson tour de force, I find one of the
greatest elite wealth-making (for themselves) strategies of all time to
be underemphasized. Persuade the government to let you build a big bank;
take a great deal of risk in that bank (particularly by increasing
leverage, i.e., debt relative to equity); pay yourself based on the return on equity, unadjusted for risk; get
cash payouts while times are good; and when events turn against you,
the central bank can bail you out – and keep you in place because you
are regarded as indispensable. This is the history of modern America.
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