Regulatory capture is ruining America:
Regulatory capture is ruining America.
What is regulatory capture?
It is ‘an economic theory where the regulatory agencies are dominated by the interests they regulate and not that of the general public’ (Source)
It’s all over America.
Finance.
Military.
Social media.
Telecom.
Bill Gurley did an excellent talk at the All In Summit about it.
Excellent. Absolute must watch.
Let’s use finance as the example.
Remembered this watching Elon Musk’s interview with Lex Fridman.
There’s a part towards the end where he mentioned how the SEC was going after Tesla and not the hedge funds that were actively shorting and pushing their propaganda through the media.
Not once.
Why?
As he says, because the lawyers at the SEC earn shit money and once they leave, their goal is for their LinkedIn.
To say on their resume they won a big case so they can go work at the law firm hired but the same hedge fund.
The wolves are in the henhouse.
Everywhere.
Think about this.
Hedge funds are allowed to talk shit about companies while actively shorting them on CNBC and they NEVER get regulated.
EVER.
CNBC is criminal propaganda of hedge funds and market makers.
They make the public believe what they want them to believe.
While the real stuff goes on behind the scenes.
Musk knows.
He was attacked ruthlessly by hedge funds openly admitting they wanted him to fail.
And making money on it.
Is Tesla overvalued?
Sure by traditional metrics.
But what Musk has built is nothing short of spectacular.
If the market and retail investors believe it’s worth a certain price, then it is.
The issue here was Musk was the one being investigated.
Not the hedge funds who were breaking the rules but the companies trying to talk back.
This is how the game works.
Follow the money.
The SEC is funded by Congress.
Congress is funded by Wall Street.
Wall Street doesn’t want the SEC to go after them.
So what do they do?
Endlessly support and back the candidates that are favourable to them.
Congress gets put in power by big money.
If I’m a hedge fund billionaire and have unlimited money like Ken Griffin and Jamie Dimon, I fund super PACs to put my guys in the government.
What happens then?
Every time a new regulation is brought through the system, they immediately block it.
Or they change the rules to substantially benefit them and ruin everyone else.
The big money in politics is disgusting, and yet it runs the world.
Let’s look at the military.
Just saw this video of Vivek Ramaswamy, an independent Republican candidate, talk about the third rail of the mainstream media.
What’s called the Neo-cons.
Who are they?
Warmongers.
The people leading America on both sides of the political spectrum are pro-war.
That’s fucked up.
Why?
Because the military-industrial complex.
They run America, not average people.
Eisenhower warned the world in 1961.
‘In the Councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.’
America didn’t listen.
Another example of regulatory capture is social media.
As per Musk in another interview with Joe Rogan, all social media companies are arms of the government.
Literally.
Google and Facebook, arms of the US government.
Show you exactly what they want them to show you.
Nothing else.
These days, you have to question everything.
Especially that from the establishment.
They’ve been caught lying one too many times.
Covid.
Hunter Biden laptop.
Russia gate.
Twitter files.
All stories swept under the rug by the establishment.
But these companies continue to profit endlessly without regulation.
Should social media be regulated?
I think so.
Their argument is no.
It’s what happening in the AI industry right now.
There’s a reason Sam Altman, the CEO of OpenAI, is heavily involved in regulation.
He wants to control the narrative and make sure it disproportionately benefits his company.
As per Elon, OpenAI started just as that.
Open, as in open innovation.
Then Sam built it and immediately turned it into a profit centre for Microsoft trying to make the most money possible.
It’s important it’s regulated, but as we’ve learned with other industries, be careful who you let regulate it.
Wall Street got away with bailouts from the government because their lobbyists wrote the laws after 2008 and put their guys in position.
Hank Paulson, Ben Bernanke and Garry Gensler were former Wall Street guys.
They led the change in policy after 2008.
Main Street lost and Wall Street won.
Literally made their billions of dollars in bonuses a year later, all at the expense of the general public.
Millions of peoples lives globally changed forever, and Wall Street didn’t suffer at all.
At all.
It’s sickening.
This ability for big money to influence politics and decisions so brazenly.
So out in the open.
So much for their benefit and not in the interest of the public.
How do we change this?
How are we going to fix this problem?
Until congress and the president want to make a switch, it’ll never happen.
And it probably won’t because they only get there by getting paid by these same people.
The prisoners are running the jail.
And we’re all trapped inside.
People need to wake up - regulatory capture is ruining America.
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