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View Diary: Ex-Goldman hedge fund billionaire Leon Cooperman embarrasses himself... (26 comments)

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  •  Roxpert - here is the scary part (5+ / 0-)

    The letter is nonsense, however the intensity will lead to action. I have been very surprised by members of the professional investment community, many whom voted for and funded the President in 2008, who are committed to his defeat in 2012. This is a group who typically stay out of politics although they make occasional campaign donations and in 2008 the donations went overwhelmingly to the President. This cycle they are in the GOP camp with both feet and very deep pockets. It's not just the Koch Brothers who will spend $200 million in 2012, but lots of people who will spend $10 million each like Leon Cooperman, and hundreds who will send smaller seven figure checks. For some reason the President has kicked a sleeping dog and he has come out full of fight. This will be a very tough, and nasty, campaign with most of the heavy punching on the GOP side coming from independent groups.

    "let's talk about that"

    by VClib on Tue Nov 29, 2011 at 06:10:22 PM PST

    •  Good point... (1+ / 0-)
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      and Newt Gingrich is just the kind of "bomb thrower" that these elites would love to support.  They need a water carrier who is shamelessly elitist.  Someone who calls on Obama to stop with that 99% versus 1% stuff.

    •  It's not the President that kicked the dog (9+ / 0-)

      Obama is firmly for the corporatocracy the 1%, he couldn't be more so than if he was the CEO of Goldman Sachs.  I can also say the same about a ton of Democrats as well.

      What's happening is that we are slowly reaching the point where something has to give.  As a nation we have to accept lower corporate profits and much higher taxation all around in order to ensure most citizens don't end up almost in third world style living conditions.  That's where we are.  Companies and the rich have to start paying their taxes, get rich quick off fees banking systems have to go.  We have to invest massively in infrastructure.  We must stop outsourcing everything for even greater profits and return things back to the US.  If we don't, the middle class will be finally and utterly obliterated permanently.

      It's a stark choice.  Either the rich become less rich and this country works for everyone.  Or we go back to people starving in the streets, no medical treatment, shitty infrastructure, and people in wage prisons.

      The thing is, nobody at the top is willing to become less rich.  What they want is the political leadership to praise them constantly and stand up and tell all the little people to shut up.  What they want is a permanent hardening of their gains, and the system that allows them to do it in steel and concrete so that it can never be undone.  What they want is the locked and gated houses as they exist in Brazil and everybody else in the slums.

      And they are paranoid as fuck that people are going to actually revolt.  Not this protest sissy crap that can be brushed off.  But violent confrontations in the streets and an actual over throw of the system.  And they are scared shitless that we are moments away from it.  And since they are unwilling to give any of what they stole back to people to avoid it, they want a government that will side with them in public and violently crack down on people who seek to change it.

      Make no mistake, this is more directed at the concept of a new New Deal style Democrat or Independent reformer rising out of the ashes, than it is at any of the current bought and crooked Democratic leaders.

      "Foolproof systems don't take into account the ingenuity of fools."

      by overclocking on Tue Nov 29, 2011 at 06:30:07 PM PST

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      •  Their real fear... (3+ / 0-)
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        MeToo, Timaeus, jimreyn

        is that their wealth gets confiscated in a sort of "wealth" tax, or asset tax.  People like Cooperman made excessive income off their carried interest, the 2 and 20 hedge fund fee structure.  It's really easy money as long as you can gather assets and generate returns.  

        You know the saying, "easy come, easy go".  That's what someone like Cooperman really fears.  He's smart enough to know of the 3rd world divide happening in the USA, and is freaked out at the protests happening where he works.  So, he feels he needs to chide the President to "tone it down".  Really an "air of fear" in his words when you think about it.

        And I agree with your assessment of Obama as a Wall Street tool.

        •  Roxpert - they don't fear a wealth tax in the US (0+ / 0-)

          Most constitutional scholars believe it would take a Constitutional Amendment to initiate a wealth tax, that's a long road with many opportunites to block it.  In the countries that have wealth taxes the rates are 1-3% per year and more countries are dropping them than adding them.  Those who are dropping wealth taxes believe that long term they hurt overall tax revenue by encouraging capital flight and discouraging domestic investment.

          "let's talk about that"

          by VClib on Tue Nov 29, 2011 at 06:53:23 PM PST

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          •  Thanks for pointing that out, however... (1+ / 0-)
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            I've spoken to many in the 1%, and I get that fear uttered to me repeatedly.  It's an irrational fear and not one founded on reality, but a fear nonetheless.  They call it "tyranny of the majority", and worry they will lose their way of life.

            •  Roxpert - that is cleary true (1+ / 0-)
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              They do very much fear the "tyranny of the majority" as did the founders who only allowed property owners to vote. They beleive it will manifest itself in much higher marginal tax rates on income, higher capital gains taxes, and some adjustment in carried interest rules, all to their detriment. That's why they are going "all in" to elect a Republican in 2012. To them it's an investment decision, not a political one.

              "let's talk about that"

              by VClib on Tue Nov 29, 2011 at 07:03:39 PM PST

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          •  Nonsense! You don't need a "wealth tax". (1+ / 0-)
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            One simply needs to adjust the Internal Revenue Code. That is, change tax rates for income and for capital gains, among other things.

            No constitutional amendment required! We already have a constitutional amendment that supports that.

            "Oh wow. Oh wow. Oh wow." -- last words of Steve Jobs.

            by Timaeus on Tue Nov 29, 2011 at 10:14:40 PM PST

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            •  Timaeus - that's true to a point (0+ / 0-)

              You can certainly slow the accumulation of wealth by higher marginal tax rates, including higher capital gains rates. However, that does nothing to tax the wealth already accumulated. It's not that hard to structure a portfolio that has little income, but strong appreciation potential. Unrealized capital gains are not taxed, but can be used as collateral to borrow, deferring any tax liability until death.

              "let's talk about that"

              by VClib on Wed Nov 30, 2011 at 04:17:30 AM PST

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      •  overclocking - you make some good points, however (0+ / 0-)

        I know some of these folks and none of them fear violent acts here in the US or some type of violent overthrow.  However, they do believe in diversification and have legally moved assets outside the US and in currencies other than dollars. They also have homes and offices in other parts of the world, so they do have a backup plan.

        "let's talk about that"

        by VClib on Tue Nov 29, 2011 at 06:58:24 PM PST

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    •  Too bad all of the candidates they might support (1+ / 0-)
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      are idiots and fools. Bit of a miscalculation there by the so-called masters of the universe.

      We have only just begun and none too soon.

      by global citizen on Tue Nov 29, 2011 at 07:00:52 PM PST

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      •  global citizen - don't count them out (0+ / 0-)

        The GOP will have a formidable ticket and lots of money. The President is the favorite, but does not have the luster he had in 2008.  Senator Obama outspent McCain 4 to 1. This time around, if you include the independent groups, it is likely he will be outspent.  This will be a much more difficult election for the President to win.

        "let's talk about that"

        by VClib on Tue Nov 29, 2011 at 07:08:01 PM PST

        [ Parent ]

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