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Crony Capitalism

Written by | November 22nd, 2008
Here is a very good article, written by Newt Gingrinch, on Crony Capitalism.
http://www.humanevents.com/article.php?id=29544
 
I believe that there are some (politicians) that would like to see our major businesses, in the hands of government.
 
In my opinion, very frightening, indeed.
 
However, after you read the article, see what you think.
 
Mark
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4 thoughts on “Crony Capitalism

  1. resqr1968

    Agreed. I was happy to hear he seemingly shares my viewpoint that crony capitalism is what got us in this mess. I believe that it is not in the American people's best interest, but a small & select very few when these behaviors are allowed.

    Being in the Accounting/Financial field, I have long felt that Sarbanes-Oxley was not the answer, but red tape to make it appear things had been fixed. It's initial intent was good, but I honestly think completely unmanageable, not to mention ambiguous from the outset in reality. Big time corporate thieves have plenty of legal eagles with back packs of loop holes for them to jump into & ultimately, cheat the system. I have seen it first hand, on more than one occasion unfortunately. Good men, or so I believed, taken down to humbling levels over bad connections & questionable practices.

    One thought I had on just reviewing the design of a wheel in place was simply by reviewing & updating our policies on monopolies. My understanding of these laws is to make sure that no one company has unfair power or advantage against the consumer. Could one not make the argument that today's crisis & the impact to the economy as a whole, resulted from a monumental error when ignoring the monopoly these organizations held for the big picture?

    Newt is right, Obama promised change & if he is to succeed in that, which is desperately needed, capital cronyism needs to disappear as well.

    Reply
  2. markross Post author

    Hi Reqr,

    I was just reading about Sarbanes-Oxley
    http://en.wikipedia.org/wiki/Sarbanes-Oxley_Act
    and I'm not sure that I still understand it : )

    "Good men, or so I believed, taken down to humbling levels over bad connections & questionable practices"

    Did you mean to say DC Politicians? : )

    Do you remember what Microsoft went threw, back in the day, with "supposed" monopoly practices? Netscape fought them tooth and nail because MS had Internet Explorer, intrinsically built into Windows.

    Now, isn't Newt's article in regards to government taking over companies?

    As to Obama, he has two choices, that is to work with The Federal branch to help reform corporate loopholes, excess etc., and spur on the growth of small business, or he will feed into the Crony Capitalism and take the position that government can better run business, over the private sector.

    If he feeds into The Crony Capitalism, then Capitalism, as we know it, is finished. In fact, I will go as far as saying that if the government gives anymore bailouts, then Capitalism is also finished.

    In America, we have been afforded the right to start and build our own businesses. With that, we are also given the right to succeed or fail. If we fail, then there are bankruptcy laws to address that. If we fail and the government rewards us, then the federal government is now becoming enablers of the very thing that Newt is speaking out against.

    Mark

    Reply
  3. resqr1968

    No, I would not have been so disheartened if they had been DC politicians. These were men, good men, whom I had personally known, worked for, even changed jobs for, that got taken down. One of them, until showing proof otherwise, I will absolutely go to my grave knowing in my heart was only guilty of trusting people he had in place under him. I don't care how much money disappeared, he would have NEVER taken a dime of it. I'm certain of it. The other one, I'd like not to believe it, but would not give my life defending him.

    Quite possibly the hardest thing I've ever endured & what has me desperately seeking to leave the Accounting field was watching this man, my CFO, who brought me there with him, be led out the door, utterly humiliated after months of investigation, where I personally endured approximately 4 days of closed door interrogation about what I knew, who did what, who asked me to do what, months of helping auditors, the BoD, attorneys & investigators pour through files, records & ledgers to prove or disprove improper behavior of men I held in high regard. Also feeling slight pressure, as this CFO had personally brought me with him, which made me feel as if I too was subject to even more scrutiny than normal. Despite the fact I knew I had & never would do anything inappropriate, let alone illegal, those were some stressful days & months for me personally.

    Reply
  4. markross Post author

    Resqr,

    It sounds like a stressful time; unfortunately, sometimes, good people get lumped into the acts of some bad people. I am sorry to hear about that.

    I think that many wealthy, honest, business people that truly do good for our country, sometimes get a bad name because of the acts of some of these completely out of touch, over rewarded, CEOs.

    Mark

    Reply

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