The Macro View

TheMacroView Episode #3: Financial Entanglement


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I will discuss the Financial Entanglement that has occurred between powerful organizations, governments, corporations, and how/why the regulators have to protect the status quo.In every industryinnovation - the kind that can cause long-standing companies with their corporate blinders on to go bankrupt, has the potential to be so disruptive it could cause massive financial losses for some of the most powerful organizations in the United States. Every labor union, city, state, even the federal government has pension liabilities that will eat up future tax revenues in the event of significant losses. This could mean forced financial prioritization for major cities, and likely massive cuts, etc. The political picture would be disastourous for leaders in office. Regulators, as the enforcement arms, must maintain the stability, in the elite classes eyes, and this is where the hypocracy and contradictions begin. Government promotes "Clean Energy" but then subsidizes fossil fuel based companies at every level. Locally, utility companies have government granted regional monopolies, all are fossil fuel based. Utility companies, from an investors standpoint, are about as safe as it gets in an equity portfolio, barring corporate scandal, they will likely never go bankrupt. Dodd-Frank, and the promotion of "Ending Too Big Too Fail", while turning around and making "Too Small to Survive" the "New Normal". Consolidation, complacency and lack of lending to growing businesses for real investment is the result +/- 7 years later -This and More on a Special #TheMacroView Check This Out: http://goo.gl/KgkDh4
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The Macro ViewBy The Macro View

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