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Why Hank Paulson Is Laughing: 4 Of 5 Regional Fed Voters In 2017 Will Be Ex-Goldman

Spin revolving door, spin. 

At a certain level, the staffing of government agencies, regulators, and other public sector bodies with former Wall Streeters and various bulge bracket bigwigs has become so ubiquitous that it’s hardly even news. 

Still, it’s worth paying attention to the dynamic because losing track of who’s really running things is a bad idea if you want to understand why it always seems like regulatory outcomes are never commensurate with the crime and if you think monetary policy and all types of other high level decisions regarding the economy are conducted at the behest of those who are ultimately beholden to the bankers. 

Case in point: Less than two months ago, Harvard professor Robert S. Kaplan who until 2006 was vice chairman of none other than Goldman Sachs replaced Richard Fisher at the Dallas Fed and amusingly, Fisher went on to become an “advisor” for Barclays.

Well, with the appointment of Neel Kashkari to the Presidency of the Minneapolis branch of the Eccles cabal, we get just the latest example of what amounts to egregious regulatory capture. Here’s The New York Times attempting to be polite about it:

Mr. Kashkari is the third new president of a regional reserve bank named this year, and all three of the men previously worked at Goldman Sachs. The Philadelphia Fed in March appointed Patrick Harker, a former Goldman trustee, as its new president. The Dallas Fed in August selected Robert Kaplan, a former Goldman vice chairman.

Yes, "all three previously worked at Goldman Sachs."

As of course did the second most powerful central banker on the planet... and as did the Treasury Secretary that, with the help of Kashkari, engineered Wall Street's bailout in 2008... and as did well, everyone who's ever been a "somebody" in Europe: 

So just in case there were any questions as to who will be making the rate hike decisions (and there really weren't any questions, but this just drives home to the point), you now know. To wit:

4 of the 5 regional Fed presidents voting in 2017 will be ex-Goldman. HT

— Jamie McGeever (@ReutersJamie)

As for the "huddled masses" that comprise the American Middle Class just remember, Kashkari's mentor "made it wider"...