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Does Wall Street Control Washington?

Posted In: Crash Prophets, Economy, Financial Markets, Financial Sector, Obama Administration, Treasuries, U.S. Government, Wall Street

“For anyone who takes issue with our increased focus on politics on Mad Money, let me make a few things clear. We are not a partisan show. We don’t care about left or right. In fact, if it were up to us, we wouldn’t be talking about politics at all. We’d much rather be directly talking about stocks that work in this environment than talking about Barack Obama’s agenda. But we bow to reality and play the hand we’re dealt. If you don’t like some of the things we’ve been saying or just wish we’d spend less time on things that seem political, you have to understand that at this moment, Washington is in control, not Wall Street.”

-Cliff Mason, in a March 11 “Mad Cap Recap” blog post on the CNBC website

Eight months on, is this still the case?

Andrew Moran, writing on the global citizen journalism news network DigitalJournal.com, recently talked about some of the latest predictions on the U.S. economy and financial system from trends researcher Gerald Celente. Moran wrote on October 27:

Gerald Celente, an author who predicts global financial markets, sat down with Russia Today on Monday to discuss Soros’s views on the economy and where Celente himself sees the financial markets in the US.

Celente’s opening statement on Russia Today was, “It’s not going to get worse before it gets better but it’s going to get worse and then worse and worse then that. There is no reason for it to improve.”

He does agree, however, with Soros on the fact that the US economy will not increase but he disagrees with Soros’s assessment that it’s the US economy is correcting itself because “the markets have been hijacked.” Later adding, “The system is fine, it’s just been perverted and under this perversion it’s not going to get better.”

The topic of Wall Street bonuses came up. Moran wrote:

Celente is not surprised at the banker bonuses because as he said, “Look who’s running the Obama team; they come from Citigroup, AIG and so on.”

“Under George Bush you had Henry Paulson, former CEO of Goldman Sachs. Now you have Geithner, former President of the Federal Reserve bank in New York and now has the key to the treasury,” and later concludes, “Wall Street has hijacked Washington.”

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