If you’re an amoral person with political connections, it’s possible to make a lot of money.
Warren Buffett lined his pockets by making a government-subsidized investment in Goldman Sachs during the financial crisis.
The rest of us suffered and he got richer, but the left seems to be okay with that perverse form of redistribution because he supports class-warfare tax hikes. Sort of like buying an indulgence in the Middle Ages.
Hey, nice work if you can get it.
But Buffett may be an amateur compared to the crony capitalists at Citigroup.
The just-confirmed Treasury Secretary Jack Lew was given a huge bonus for leaving Citigroup several years ago. Did the company give Lew a bonus because they were happy to shed his $1.1 million salary after he presided over gigantic losses at the firm’s alternative investments division?
Don’t be silly. He was showered with money specifically for leaving the company to take a “high level position with the United States government”
Again, nice work if you can get it.
But Lew’s loot is pocket change compared to the $115 million that former Clinton Treasury Secretary Robert Rubin received for helping to steer the company into financial collapse.
So is this evidence that the private sector is systematically stupid?
I wish that was the explanation.
Instead, this is tragic evidence that it’s possible to “earn” a very high return when you “invest” in cronyism.
According to the Treasury Department’s Special Inspector General, Citigroup got $45 billion of TARP handouts and $301 billion of guarantees.