Crony Capitalism

I’ve written before about what I think is wrong with our financial system. David Stockman’s piece takes aim at Mitt Romney and in the process provides one of the best summaries of Wall Street I’ve ever read:

That is the modus operandi of the leveraged-buyout business, and in an honest free-market economy, there wouldn’t be much scope for it because it creates little of economic value. But we have a rigged system—a regime of crony capitalism—where the tax code heavily favors debt and capital gains, and the central bank purposefully enables rampant speculation by propping up the price of financial assets and battering down the cost of leveraged finance.

Check out the whole article.