2008 Financial Topics: Of Politics and Economics

We have shared a brief sense of relief that the election is over. This relief has yielded to a yet deeper level of anxiety about the unfolding financial crisis. At each descending level it becomes more apparent that the clear distinction between politics and economics we long for, simply does not exist.

In the spirit of Midwestern candor, I offer that almost none of the people I voted for won. God knows I didn’t vote McCain based on the Republican Party’s record on economic issues. As utterly incompetent and even corrupt as many Republicans seem, I am thoroughly convinced that socialist medicine will be worse than the economic disease we are afflicted with. I keep searching for some form of economic thought and analysis which transcends the stale deadlock between hippy socialism and cowboy capitalism. Neither of these categories have much to do with the political economy we really inhabit.

As I write, Citicorp has negotiated with Federal agencies about the next round of capital needed for solvency. One can only wonder how deep the hole in their balance sheet really is. It is hard to draw a meaningful distinction between Fannie, Freddie and Citicorp. Fannie and Freddie are public institutions pretending to be private and Citicorp is a private institution pretending to be public. They are all just huge institutions hooked to a Federal IV. The only thing we know is that all this monkey business was worth more than $100,000,000 each to Franklin Raines and Sandy Weil.

Shortly before the election, an economist I know was asked what he would do first if he were elected President. He responded, “I would demand a recount.” The only two motivations for seeking public office are megalomania and a profound desire to serve. I pray for the latter.

Obama’s moves since the election have reinforced the view that he will be more centrist in his economic policy than his rhetoric and record would suggest. He is a very intelligent, disciplined man who knows his long-term objectives. I admire his focus, but I don’t share his objectives. The economy must be stable for Obama to accomplish his deeper objectives. He will not frivolously spend political capital on economic extremism. This is good news for those of you concerned about your financial portfolio. This is bad news for those of us concerned about more important matters.

Post a Comment

Your email is kept private. Required fields are marked *

Fraud

Security Seminar with Secure Banking Solutions

Tuesday, March 21, 2017

We recently held a security seminar for our commercial banking customers with Chad Knutson from Secure Banking Solutions. Chad went through the latest in cyber threats and talked about industry best practices. Attached is one of the slides on Ransomware. If you would like more information on a future Nicolet Bank security seminar, please email [...]

Financial Topics

Investment Quarterly Review

Monday, April 10, 2017

The investment Quarterly Review from our partners at Northern Trust for First Quarter 2017.

More

Business Pulse - Cybersecurity has emerged as a major issue for CEOs

Monday, July 27, 2015

CEOs Express Concern about the Cybersecurity of their Business. Read the full report here. Business Pulse – JUNE 2015 EXECUTIVE SUMMARY CYBERSECURITY  

Nicolet Bankshares, Inc. 2nd Quarter 2015 Earnings Release

Tuesday, July 21, 2015

Nicolet Bankshares, Inc. (OTCQB: NCBS) earnings release for 2nd quarter 2015. 2Q15 Earnings Release

How to Ensure a Good Credit Score

Wednesday, July 8, 2015

First, let’s understand how your credit score is determined. Your credit score is broken down into five categories weighted accordingly: Payment history = 35% Total amount owed = 30% Length of credit history = 15% New credit = 10% Type of credit in use = 10% MAKE YOUR PAYMENTS ON TIME. This is the most [...]

Tools

Font Size
Contrast