Investing savant Dr. Marc Faber says that demonstrators against Wall Street should instead occupy Washington and the US Federal Reserve.
The Business Intelligence Middle East quotes Dr. Faber (bold emphasis mine)
On the US Federal Reserve’s preference to support the banking and financial class through bubble policies:
We cannot blame Wall Street and well-to-do people for the mishap, for this ratio to have exploded on the upside. We have to blame essentially expansionary monetary policies that favor assets. So you have low consumer price inflation, you have no wage inflation."
In fact, the problem in America is that real wages, real compensation has been down since the 1970s. But at the same time, asset prices, equities, real estate and so forth have gone up dramatically, and that favors people who have these assets. And so the ratio expanded and you have now a record wealth inequality, and income inequality…
On Washington’s bribery of Americans in order to expand welfare state for the benefit of the political class and their cronies.
The problem with government is that the original intention of, especially a democracy, is very good.
Everybody has a say in how societies should be structured, but over time, it becomes very polarized and it moves into the hands of powerful business interests, and also interest groups like the military complex, or say the welfare recipients and so forth…
So you end up with kind of on the one hand a tyranny of the masses where you distribute all kinds of goodies to people. Like in America roughly 50% of the population gets a handout one way or the other from the government. So by continuing to support these people, you get their votes.
The protestors should focus on the root of the problem
Wall Street is a minority, anyone else would have done the same, they use the system but they didn't create the system. The system was created by the lobbyists and by Washington. So they [the protesters] should actually go to Washington and also occupy the Federal Reserve on the way
Professor William L. Anderson further suggests for an Occupy Princeton University movement (highlights mine)
That's right, I am calling for an immediate occupation of...Princeton University, and specifically, its economics department. There is no other place on earth that has given us more players and more enablers of the financial madness that has gripped this economy for many years.
Reason: Because of the notoriety of some of the academic alumnus towards interventionist and inflationist policies: Ben Bernanke, Alan Blinder, Alan Krueger and Paul Krugman
Continue reading Professor Anderson’s explanations here
