I owe almost my entire Wall Street career to the Clintons. I am not alone; most bankers owe their careers, and their wealth, to them. Over the last 25 years they with the Clintons it is never just Bill or Hillary implemented policies that placed Wall Street at the center of the Democratic economic agenda, turning it from a party against Wall Street to a party of Wall Street.
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That crisis came in January 1995, halfway through the administrations first term. Mexico, after having boomed from the optimism surrounding Nafta, went bust. It was a huge embarrassment for the administration, given the push they had made for Nafta against a cynical Democratic party.
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As the crisis unfolded, senior management traveled to DC as part of a group of bankers to meet with Treasury officials.
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To the surprise of Wall Street, the administration pushed for a $50bn global bail-out of Mexico, arguing that to not do so would devastate the US and world economy. Unmentioned was that it would have also devastated Wall Street banks.
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The bailout worked, with Mexico edging away from a crisis, allowing it to repay the loans, at profit. It also worked wonders on Wall Street, which let out a huge sigh of relief.
The success encouraged the administration, which used it as an economic blueprint that emphasized Wall Street. It also emphasized bailouts, believing it was counterproductive to let banks fail, or to punish them with losses, or fines or, God forbid, charge them with crimes, and risk endangering the economy.
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Except that Hillary Clinton continues to receive large
donations from top bankers. Ask anyone who has spent the last two decades on Wall Street which politicians have worked for them the hardest and most will grudgingly admit its the Clintons. I doubt that will change anytime soon.