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NOTE Why is investment banking particularly resented?

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There are basically two types of banking. There are more than two, but let's take that as a generalization.

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The sort of investment, the loan bank, where the banker saves up money and lends it out, like the Medici's used to do.

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We hear about Fugers or Medici's in the Middle Ages or Renaissance period. These were loan bankers.

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They saved out money in various enterprises and they loaned them out.

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This is perfectly legitimate, magnificent, productive and all that. Absolutely nothing wrong with it.

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The investment bankers are sort of like that in the sense that they also will save out money and lend it out or borrow money from other people and re-lend it as experts.

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There's also nothing wrong with that.

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With this exception, this important exception which enters into our story, namely the investment bankers who are essentially underwrite security issues, stocks and bonds,

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Throughout the modern history, one of their major sources of profit is from government.

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In other words, government issues bonds, and investment bankers underwrite them, buy them, resell them, or underwrite them.

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So this brings investment bankers into, hip-deep into government, and also hip-deep into politics, since they help finance government deficits.

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And as a result of that, investment bankers play a very state-hizing, if you can use that term, influence in modern history, manipulating governments, putting one group in power, taking another group out of power, and so forth and so on.

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In other words, the problem with investment bankers is that since they underwrite government bonds to a large extent, they become hip-deep in government.