You remember Elizabeth Warren, our fake-Cherokee sage on the evils of the financial markets? She was responsible for pushing policy changes in the wake of the 2008 financial crisis to end “proprietary trading.” Proprietary trading creates situations where financial institutions have one-way bets on a particular asset.
It used to be that when stock markets declined dramatically, financial institutions would do what rational investors with long-term perspectives on the market do – they buy the dip and hold the assets until financial conditions normalize.
Thanks to Warren – who has never worked in the financial markets and thus regards financial infrastructure with the mindset of a political activist rather than a mechanic informed by actual experience and logistical understanding – banks can no longer fill the role of market makers in times of crisis. This means there is no safety net for the financial system in times of crisis. There’s only the moral obligation of the government to intervene, and bank-haters like Warren just want to see the whole thing burn anyway.
So spare a thought today for the Democratic Socialists in our midst, who are about to get a lesson in who actually pays taxes in our country and who actually funds our safety nets for households.
I can’t wait for these people to learn what countries have been responsible so far for financing the deficits they love to run up so much too. No worries there, lol.