At this level the revolving door is not trading in mundane things like "jobs."
It's having a seat at the premium VIP trough. Permanent access to the sort of taste Hillary got by investing $1K and getting back $100K, or whatever it was. > ----- Original Message ----- > From: Jim Devine > Sent: 04/08/08 07:26 pm > To: Progressive Economics > Subject: Re: [Pen-l] "The Fed is blameless on the property bubble": guess > who? > > raghu wrote: > > This is an interesting theory. But I find it difficult to believe that > > very high level Fed officials like Al and Ben would be motivated by > > any "revolving door". There has to be a different mechanism for > > "regulatory capture" for these guys. I think it is just plain > > ideology. > > They were hired/appointed largely on the basis of pressure from the > banking sector and Wall Street. "Main Street" is largely ignored in > this process. So the Fed Head shares the financial ideology. > > Also, on a day-to-day basis, the banks and Wall Street are the ones > who pay the most attention to what the Fed does and lobby it. Most > people are blissfully ignorant. > > And, banks choose branch presidents who are on the Open Market > Committee, while the New York Fed (one of those branches) is always > represented there. > > While there's a common culture shared by all bankers and finance types. > > Finally, morale must be maintained. If someone who wasn't pro-bank and > pro-Wall Street got in, the banks and WS would go ape-shit. In fact, > that's what happened when William Miller became Fed Head during the > 1970s. He was ousted and replaced by Volcker. > > That doesn't mean that the Fed Head is a puppet of the banks and WS. > There's always a tension between obeying the short-term interest of > the banks and WS vs. serving their collective and long-term interest > (to the extent that the latter is known). (This is based on J.-J. > Rousseau's distinction between the "will of all" (a sum of short-term, > particularistic, interests) and the "general will" (shared interests > in the long run).) > -- > Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own > way and let people talk.) -- Karl, paraphrasing Dante. > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l >
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