No one is shocked likely, or even surprised, by the revelation that Goldman Sachs may become one of Hillary’s biggest campaign contributors. As senator for New York, she voted for the Emergency Economic Stabilization Act in 2008 along with 73 of her colleagues. So it should come as no surprise that certain large Wall Street firms might be inclined to help pay for her presidential election campaign. Call it pragmatism on their part to support someone like Hillary if you must. A sure source of hundreds of billions of taxpayer money is nothing to be sneezed at. Moreover, it was Secretary Paulson himself who proposed the act in the first place, after letting Lehman Brothers go bankrupt after Barclay’s was unable to get British regulators to approve the deal.

What will happen with someone like Hillary Clinton in the White House if another crisis looms? Say with Secretary of the Treasury Elizabeth Warren? The financial industry would become so over regulated that the term individual crisis would lose meaning. The cost of capital would rise and the rate of innovation would fall. Home ownership would be enshrined as a constitutional right – some would argue that Freddie Mac and Fannie Mae have already tried to do that – and the supply of new homes would dry up as available land was sealed off from further real estate and other developments. Subsidised Solar Power would expand and electric car owners would have to wait for endless brown outs to end to charge their vehicles. Big Labor would try to get their foot back in the door and might even succeed, if only in producing a greater number of strikes. Tax rates would become similar to those in the EU and Swiss army reserves would be put on high alert due to threats of invasion … by France and the USA. Germany, of course, would have to remain painfully neutral. So go ahead Goldman Sachs, and lay your money down. Let’s see how your bet plays out over the long term.

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