Post by oldnewbie on May 1, 2024 2:00:11 GMT -5
fred.stlouisfed.org/series/FYFRGDA188S
That just looks like noise to me. Not much in the way of trends based on specific policy.
The Pernicious Myth of Meritocracy (Why American capitalism is so rotten, Part 5) It’s time to banish the absurd idea that people are paid what they’re “worth”
"A decade ago, the hedge fund manager Steven A. Cohen earned $2.3 billion. During his 20 years at the helm of S.A.C. Capital Advisors, he had amassed a fortune estimated to be around $11 billion.
Was he really worth it? In the trivial, tautological sense, he must have been, because that’s what he earned. Private hedge fund people only make money because others voluntarily decide that it’s worth it to invest their money with them,” noted Dan Mitchell of the right-wing Cato Institute, in response to my public questioning of Cohen’s pay.
But there may be a reason people decided to invest their money with Steven A. Cohen that raises a deeper question about his “worth.”
According to a criminal complaint filed by the Justice Department, insider trading at S.A.C. Capital under Cohen’s leadership was “substantial, pervasive, and on a scale without known precedent in the hedge fund industry.” Nine of Cohen’s present or former employees pleaded guilty to using insider information. The firm itself entered a guilty plea and paid a $1.8 billion fine.
For years, investors had put their money into S.A.C. Capital — presumably because the firm’s trades on inside information generated huge returns. Had the firm’s insider trading been discovered and prosecuted earlier, those returns would not have been nearly as high, investors would not have put their money there, and Cohen’s wealth would never have amounted to $11 billion (minus the $1.8 billion fine)."