Sunday, November 15, 2009

Jamie Dimon Doesn't Understand Basic Math Or Our Laws On Too Big To Fail

Dimon's ego obviously leads him to write this op-ed in the Washington post. An opinion filled with a tremendous lack of understanding of economics, systemic risk or American anti-trust laws. Is it any surprise that the banksters have created such a crisis when their leadership is so uninformed?

We have written repeated posts on monopoly over the last four years. The dynamic of monopoly and oligopoly goes well beyond the obvious impacts as we have highlighted. They depress competition and ingenuity, they depress wages, they depress economic opportunity, they unduly influence political policy, they depress the ability of democracy to work in our economy and on and on. The list is literally endless. Given a day I could probably come up with a list of fifty very negative impacts on America by allowing JP Morgan Chase to continue to exist. Maybe you could cite even more reasons.

The fact that Dimon argues against anti-trust laws that are over 100 years old and is allowed to do so in a major American newspaper without an opposing rebuttal is more validation of the golden rule - those who have the gold make the rules. Every major oligopoly and monopoly in America today is breaking our laws by being allowed to exist. Laws that politicians choose not to enforce for their own personal financial gain. Why is this any different than arguing for the legalization of theft in a major newspaper? Theft is also illegal. And, monopoly allows firms to steal from society - the reason we have one hundred year old anti-trust laws.
There is absolutely no way Dimon can mathematically deny the impacts of monopoly and oligopoly. It is ego and ego alone which drives an unscientific plea to allow his firm to continue to operate at the expense of democracy in this country. And at the expense of taxpayers.

The problem with allowing bureaucrats to control the microphone, be they Washington politicians or corporate stewards is that few truly understand what impacts their decisions have on society. Nor do they care. A major reason why concentrated power is always destructive. Even if it is well intentioned. Dimon proves this point in spades.

The only way to have a thriving democracy is to have public discourse of opposing views to hone the blade of excellence. Where is the rebuttal given front page exposure in the Washington Post?
posted by TimingLogic at 9:17 AM