Goolsbee leaves the White House and then hedge funds pay premium dollars to hear him wax economic every Friday over the phone. Why? Because the hedge funds believe Goolsbee offers “insight” into economic moves coming from the White House.
It’s not a bad position to be in – unofficial conduit between Obama and the hedge fund industry. But sorry everyday stock traders each call is limited to 16 participants and if you have to ask how much it costs to be on the call you have no business on it.
You and I have to wait a few days to get the official economic tack from the White House. And as we all know that’s a few days too late.
Those firms and others paying to be on the call get to hear from Goolsbeee on the most important economic and policy issues of the day, such as Federal Reserve moves, the U.S. housing market, bitcoin, high-frequency trading, Chinese growth and the debt ceiling. Goolsbee does not give trade ideas for the hedge funds, but rather they get his big-picture perspective on issues more indirectly related to their investments…
…Arbess called Goolsbee “a brilliant and flexible-minded economist” who helps him understand the intersection of government policy and investing in part because of his “strong informal ties” with the Obama administration.
Read more at Against Crony Capitalism.org