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from The Great Debate:

Plutocrat manipulates stock? Old news!

On Monday, the New York Times detailed William A. Ackman’s “extraordinary attempt to leverage the corridors of power” in order to to drive down Herbalife stock prices. Ackman, who runs the hedge fund Pershing Square Capital Management, has gone short on Herbalife.

He stands to make a great deal of money if the stock price declines -- and he is not about to leave its decline to chance. So, the Times reports, Ackman has enlisted congressional representatives to solicit an investigation. He has organized news conferences and letter-writing campaigns. He is trying to make his attack on Herbalife’s stock seem a grassroots, civil rights issue.

The only thing extraordinary about all of this, however, is that the New York Times finds it extraordinary. These are some of the hoariest practices in American capitalism. Indeed, in 1886, Isaac Bromley, who was both a journalist and a lobbyist, accused the Times of being a tool of Wall Street bears in driving down Union Pacific stock. Bulls were using two other papers, the Indicator and the Graphic, to boost the stock.

Charles Francis Adams Jr., the president of Union Pacific, found himself in despair as Congress debated bills in 1886 to investigate his railroad. The railroad had a history of corruption -- but that was not the point of the investigation.

from The Great Debate:

First Gilded Age yielded to Progessives, can today’s?

 

C.K.G. Billings, a Gilded Age plutocrat, rented the grand ballroom of the celebrated restaurant Sherry's for an elaborate dinner on March 28, 1903. He had the floor covered with turf so that he and his 36 guests could sit on their horses, which had been taken up to the fourth-floor ballroom by elevator.

Mark Twain labeled the late 19th century the Gilded Age – its glittering surface masking the rot within. This term applies today for the same reasons: The rich get richer; most everyone else gets poorer. And the public thinks corruption rules.

New technologies similarly transformed the economy in that era and boosted productivity even as life for many Americans grew worse. Bloated tycoons? Desperate workers? A threatened middle class? Poverty amid the sweeping progress? Check, check, check and check.

from The Great Debate:

The ‘Hollywood Test’ for president

If you think of the current presidential campaign as a movie, the economy, by all rights, should have pre-empted most of the drama and handed the lead role to the lantern-jawed financier. The movie would have told of a decent man, so unflappable that he never broke a sweat, who tried his best but couldn’t work his will on the world and make things right. Into that void, walked Republican nominee Mitt Romney, who vowed that he had the experience and strength to turn things around.

Here was a simple plot pitting weakness against strength, a well-meaning amateur against a tough-minded business titan – essentially, the professor against the industrialist.

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