Mark Twain called the late nineteenth century the “Gilded Age”. In fact, Mark Twain wrote a novel called “The Gilded Age” ridiculing Washington D.C. and many of the leading figures of the day. Mark Twain thought that the period was glittering on the surface but corrupt underneath. Many people believe that there are many similarities between that era and our current era. It seems to me to be another instance of history “rhyming”.
The Gilded Age was an era of intense political partisanship. Sound familiar? This era also saw the rise of the Populist party. Burdened by heavy debts, many farmers joined the Populist party. The Populist party, among other things, called for an increase of the amount of money in circulation and government assistance to help farmers repay loans. Similar populist policies are definitely alive and well today.
The Gilded Age has been caricatured as an era of corruption, conspicuous consumption, vulgar displays and unfettered capitalism. This late nineteenth century era was seen as a period of the “robber barons”, unscrupulous speculators and extravagant displays of wealth by America's upper class. Many people would describe our current era in a similar fashion.
I do look forward to some writer stepping up and becoming this era's Mark Twain because human nature being what it is, not much has really changed either on Wall Street or in Washington.
“Robber Bankers”
I am often asked by folks not familiar with the financial world - “Why are the banks in such bad shape?” It's simple - because their executives looted them and their board of directors let them. Will future historians talk about this era as an age where “robber bankers” ran rampant?
This age of the “robber bankers” began years ago. During the dotcom bubble, investment bankers and the like took public hundreds of companies which were valued on nothing more than hot air. Much of the hot air was supplied by the enablers on CNBC and other media outlets.
During that boom, for every dollar that was raised via an IPO, banks made 57 cents in fees and about half of that was dished out directly to the bankers.
