Josh Brown: Elizabeth Warren’s Banking Sector Napalm

Ted · July 2019

FYI: This week, the Warren Campaign put out its plan to “rein in Wall Street” – their words not mine – including some hyper-specific proposals to completely blow up the private equity business model and offer access to plain vanilla banking services directly from the Federal government.

Elizabeth Warren is a much more dangerous candidate for the banking industry than Bernie Sanders ever was, because Warren actually understands how all this stuff works, while Bernie just shouts the loudest. She’s done the research. She’s documented all the ways in which finance acts counterproductively for the economy and channels more of the available wealth to its own executives – in many cases while laying the risk off onto other parties and even regular people.
Regards,
Ted
https://thereformedbroker.com/2019/07/21/elizabeth-warrens-banking-sector-napalm/

LewisBraham · July 2019

Some of Warren's ideas are quite good:

Holding private equity firms responsible for certain pension obligations of the companies they buy, so that workers have a better shot of getting the retirement funds they earned.

Changing the tax rules so that private equity firms don’t get sweetheart tax rates on all the debt they put on the companies they buy.

Modifying bankruptcy rules so that when companies go bust, workers have a better shot at getting pay and benefits and executives can’t pocket special bonuses.

Preventing lenders and investment managers from making reckless loans to private equity-owned companies already swimming in debt and then passing along the danger to the market by requiring them to retain some of the risk.

Empowering investors like pension funds with better information about the performance and effects of private equity investments and preventing private equity funds from requiring investors to waive their fiduciary obligations.

Closing the carried interest loophole that lets firm managers pay ultra-low tax rates on the money they loot.

Private equity firms pushing companies into bankruptcy with debt, then screwing workers by voiding the companies' pension and healthcare obligations as the companies re-emerge from bankruptcy is a classic strategy for them. That really should stop.

Ted · July 2019

@Lewis You got to be kidding me, Pocahontas's, recession scare appears long on fear, short on facts.
Regards,
Ted
https://www.cnbc.com/2019/07/22/elizabeth-warrens-recession-scare-is-long-on-fear-short-on-facts.html

National Review:
https://www.nationalreview.com/2019/06/elizabeth-warren-terrible-plans/

Washington Post:
https://www.washingtonpost.com/opinions/elizabeth-warren-has-lots-of-ideas-bad-ideas/2019/06/19/ec645b36-920e-11e9-b58a-a6a9afaa0e3e_story.html?noredirect=on&utm_term=.e44670e19a1c

Mises Institute:
https://mises.org/power-market/another-reminder-elizabeth-warren-fraud

Washington Examiner:
https://www.washingtonexaminer.com/opinion/elizabeth-warren-is-wrong-this-race-really-is-about-the-size-and-scope-of-government

LewisBraham · July 2019

Oh god, Ted, are you serously going to use the "Pocahantas" line when "Broke-a-hontas" is in charge? Get some new material and stop linking to sources that confirm your preconceived notions of how the world works. In finance, that's called "confirmation bias."

Old_Joe · July 2019

It's also called typical right-wing know-nothing.

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Josh Brown: Elizabeth Warren’s Banking Sector Napalm

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