In government-created (corn ethanol) market, Wall Street wins

corn planting cc

Ethanol is a boondoggle on many levels and it’s a particular favorite of rural, Republican leaning areas of the Midwest. They’re all for small government – to a point.

There are lots of corn farmers in Iowa. Iowa holds the first presidential caucus. This is not a coincidence and one of the main reasons why rolling back these fuel requirements will be supremely difficult.

But it’s not just Big Ag at the trough, the big banks get in on the action too as Tim Carney reports.

(From The Washington Examiner)

When Congress created an ethanol mandate in 2005 and expanded it in 2007, this was widely, and correctly, derided as a political gift to the ethanol industry. But it’s worth noting that big Wall Street players were also pushing for the ethanol mandate.

In fact, Goldman Sachs lobbyist Mark Patterson was lobbying on ethanol within a year of becoming Treasury Department chief of staff in the Obama administration.

Click here for the article.