I threw these three news items together because they all make me think of how elite privilege is becoming entrenched in America. Preppies can risk more insider trading and the more pedigreed traders at hedge funds will probably get away with it. The biggest banks get first run at borrowing low to fund their carry trades under the Fed's pumped buying programs. Even tech firms resist legal challenges to their unfair competitive practices.
This ominous trend in favor of elite privilege is antithetical to free enterprise. Retail investors can't compete against insiders who routinely access non-public information at little risk. Small firms can't compete against big banks skimming carry trades or big firms cherry-picking talent. Challenging this atmosphere in court requires expensive class action lawsuits that extract a pinprick in damages from giant firms. Those firms continue to earn monopoly rents. The more likely solution is a massive market crash that flushes many bad actors out of C-suites and into bankruptcy. That outcome is the only corrective mechanism the free market has left.