Gresham’s Law

Jesus, this article will curdle your milk for you.

The goal of Son, and increasingly most large financiers in private equity and venture capital, is to find big markets and then dump capital into one player in such a market who can underprice until he becomes the dominant remaining actor. In this manner, financiers can help kill all competition, with the idea of profiting later on via the surviving monopoly.

Matt Stoller

Grasham’s Law, by the way, states that “bad money drives out good”.

Its one thing to argue the pros and cons of capitalism, but its another thing entirely to say that what passes for capitalism today isn’t a horrendous, shambling, ghoul of a thing, crushing everything in it’s path and trailing an expanding wake of despair while a tiny group of (largely white) dudes harass it forward with diamond cattle prods, hosing each other down with champagne, and high-fiving all the way.

You would think we’d learned some lessons after the sub-prime mortgage meltdown., but clearly we have not. The thing we’re calling capitalism today is really something more like financialism. It’s just money manipulating more money without even a nod to the quaint concept of goods and services.

Late-stage capitalism. What an unrelenting mess.