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Elizabeth Warren asks why is Obama appointing so many people from Citigroup

So, how would you propose to limit "Wall St's" earnings?
 
That's not the right question. You're coming at it from the 1% victim perspective.
 
Ok, then how you do encourage the best and brightest to do something besides Wall St?
 
Let me pose you a question. What is the purpose of our financial sector?
 
So do you think the financial sector is allocating capital to itself (as evidenced by its growth) because the financial sector is itself the highest and best use of capital?
 
And it's interesting that you said "allocate" instead of "facilitates the allocation of."
 
PhDeac said:
So do you think the financial sector is allocating capital to itself (as evidenced by its growth) because the financial sector is itself the highest and best use of capital?
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This is dumb. There a ton of reasons for the financial sector's growth
 
Strickland33 said:
Such as?
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Forgot how much I hate this place and why I quit coming.

On a very macro level to name a few:
- Technology
- Population growth
- Emerging markets
- Fall of Communism
- Declining manufacturing
- Energy
- Priv equity, hedge funds, VC
- Securitization
 
Tin Cup said:
Forgot how much I hate this place and why I quit coming.

On a very macro level to name a few:
- Technology
- Population growth
- Emerging markets
- Fall of Communism
- Declining manufacturing
- Energy
- Priv equity, hedge funds, VC
- Securitization
Click to expand...

Two of those are financial services. Three if you count emerging markets which is due to population growth and financial services industry in those populations.

Sorry you hate your views being challenged.
 
Deacon923 said:
Don't forget high speed trading. Anybody else read Flash Boys?
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Yep. Financial services spending money on financial services to boost the profits of financial services.
 
PhDeac said:
Two of those are financial services. Three if you count emerging markets which is due to population growth and financial services industry in those populations.

Sorry you hate your views being challenged.
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This.
 
PhDeac said:
Two of those are financial services. Three if you count emerging markets which is due to population growth and financial services industry in those populations.

Sorry you hate your views being challenged.
Click to expand...

I'm not denying that financial services have expanded. In 1980 PE/hedge funds/VC barely existed. They've obviously grown exponentially in the past 30 years, contributing to a higher % of financial sector GDP.

Do you like Twitter? Facebook? LinkedIn etc etc etc? None of those happen without investor capital. Do you like being able to click and sell a stock? Do you like having a pension fund available to you? Doesn't happen without investor capital.
 
Tin Cup said:
I'm not denying that financial services have expanded. In 1980 PE/hedge funds/VC barely existed. They've obviously grown exponentially in the past 30 years, contributing to a higher % of financial sector GDP.

Do you like Twitter? Facebook? LinkedIn etc etc etc? None of those happen without investor capital. Do you like being able to click and sell a stock? Do you like having a pension fund available to you? Doesn't happen without investor capital.
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Private equity and VC have been around for as long as money. Angel investors weren't invented in 1980. But they have gotten better at what they do and extended their reach, as technology and communications have made that kind of capital formation more efficient. I think some trends in that industry have been a net positive to the economy.

The hedge fund sector has underperformed the S&P for like the past 20 years. There's a few superstars, and if you can't get into their funds, you're getting robbed. It's close to a scam.

But the real problem is all the money being made in the general category that I think of as money manipulation. Guys like the high-speed traders, who are making tons of money off nothing but fancy technology enabling them to place orders a billionth of a second faster than the next guy. Or the geniuses who set up all the fancy financial instruments surrounding the 2008 financial crash. None of that is a net positive to our economy. This does not help Facebook or anybody else get investors. It's all just basically a tax on all investors, and all it does is line the pockets of a few hundred or few thousand .05 percenters without adding value to anything.
 
^yes, that. Everyone loves venture capital and private investment, that is not the point at all.
 
WakeandBake said:
^yes, that. Everyone loves venture capital and private investment, that is not the point at all.
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Yeah. There were rich guys investing before there was a financial services industry.
 
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