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Tony Wang

Tony Wang
Location
San Diego, California, USA
Birthday
September 05
Company
www.buyandholdplus.com
Bio
Just a city boy...but definitely not born and raised in south Detroit

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OCTOBER 14, 2011 9:38PM

Occupy Wall Street Gets Support from Unlikely Places

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If you were to put together a list of supporters of the Occupy Wall Street movement, you'd probably put people like Michael Moore and Susan Sarandon on the list.  These people are well known for supporting progressive causes, so you wouldn't blink an eye when they lent their support to the movement.  Warren Buffett would go on there, too.

But would you put a hedge fund manager there?  The head of one of the banks that was deemed too big to fail?  Or the two chief investment officers of the biggest mutual fund in the world?  How about a Nobel Prize winning economist other than Paul Krugman?  Or the head of the biggest asset management firm in the world?

These people would be far from your list of the usual suspects.  But they've lent their support to the protestors.

We'll start with the CEO of Citibank, one of the banks that was nationalized in the fall of 2008.  Vikram Pandit called the protestor's views "completely understandable" and said he'd be happy to sit down and talk to them.  "Trust has been broken between financial institutions and the citizens of the U.S., and that is Wall Street’s job, to reach out to Main Street and rebuild that trust," he added.

Pandit was asked to be more specific, and he said "I’d talk about the fact that they should hold Citi and the financial institutions accountable for practicing responsible finance."

Then we'll toss in the comments of Bill Gross, one of two chief investment officers for Pimco.  On his twitter feed, Gross said, "Class warfare by the 99%? Of course, they’re fighting back after 30 years of being shot at."  Mohammad El-Erian, his partner at Pimco, said that Occupy Wall Street is part of a global push for social justice and that leaders need to listen.

Of course, you've heard certain commentators try to portray the people exercising their first amendment rights as lazy slackers with nothing better to do.  Try telling that to Larry Fink, the CEO of BlackRock, which is the world's largest asset manager. "These are not lazy people sitting around looking for something to do. We have people losing hope and they're going into the street," Fink said.

Adding his voice to those on Wall Street who get it was Jim Chanos, who runs a $6 billion hedge fund.  Calling New York too "finance-centric," Chanos said that "people are angry.  They feel the game is rigged, that they didn't get their fair shake."

And a Nobel Prize winning economist not named Paul Krugman met with the protestors.  He gave them an impromptu economics lesson -- so much for them not knowing what they're talking about -- and repeated one of the best phrases I've heard about the economic crisis.  Wall Street, he said, engaged in "socializing losses and privatizing gain."  Instead of capitalism, he said, that's "a distorted economy."

So the next time you hear someone babbling about how the protestors on Wall Street and throughout the country are slackers, ask them to talk to Larry Fink.  When they say that these people are anti-capitalist, ask them when they gave speeches in Stockholm.  When they say no, tell them what Stiglitz said.

Remind them that Bill Gross said that yes, it is class warfare because the 99 percent are sick of getting shot at.  Tell them that a hedge fund manager understands why people are angry.  And that the CEO of one of the biggest banks in the world thinks the protestors are worthy of a meeting.

It might burst through the bubble.  Even if it doesn't, it will make you feel better.

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Nice. I did know this. Do you think Pandit is serious about his trust comment? I say this only because our banks are institutions that discarded the value of trust as important in a community. If he's for real, then it's hopeful to know. The movie Too Big To Fail made him out to be a real doofus. I have no idea what he's really like. All that aside, it is heartening to hear these guys saying they "get it." Thanks.
Grif, Pandit was the guy who had to clean up the mess that Charlie Prince created. By the time he took over, it was a mess.

When the government had to bail out Citibank, he cut his pay to a dollar. Don't cry for him, because he's a very wealthy man. But I think he gets it.

I think he's sincere. B of A said they were going to tack on a five dollar per month fee for debit card users, and what did Citibank do? They said we're not doing that.

As an aside, you know how Stiglitz had to give that impromptu economics lesson at the Occupy Wall Street protest? I had to do the same thing at the Occupy San Diego protest. I had to explain what lead to the financial crisis. I was not a popular man when I said that we the people are partially to blame, because we're the ones who wanted more house than we could afford and thus signed up for exotic loans.
Thanks for the update on Pandit. My first sentence in original comment should read "I did not know this." I am an educator by profession who has an interest in financial matters. Took a superb continuing ed course at Duke on financial planning (gen principles, insurance, retirement, investments, taxes) and so have some vocab sense and decent general knowledge. Appreciated one of your previous articles on options too.
Grif, glad you liked it. I really think everyone should be selling covered calls in order to goose their returns a little. I figure that extra one to two percent you get will be the difference between a retirement that features lots of staycations versus one that features lots of vacations.
I agree about writing covered calls to help generate extra income. Going the extra mile with your investments only can help you in the long term.
"We did really well under Reagan and Clinton and W, but right now we have an all star in the White House." Oli Garch http://www.thenakedemperor.com/oligarch/larry-fink
Warehouses need to be emptied...it doesn't matter if it is widgets or helicopters... http://www.thenakedemperor.com/oligarch/larry-fink