“This final note today, the Cosa Nostra edition. A report out in Italy earlier this week says the mafia is that country’s biggest bank. Apparently, it’s been making big gains during the European debt crisis: more loans — if you can call ‘em that — to people who can’t get cash elsewhere.

“The mob, according to the Italian firm SOS Impressa, does $178 billion worth of business a year. Profit margin’s about 60 percent.”

At almost the same time, PBS News Hour (at 20:27) was doing a report on Bain Capital: during the time that Mitt Romney was its leader, from 1984-99, Bain’s investors gained 88% a year on their investment.

So let’s see, 60% vs. 88%: which is better—or, depending on your point of view—worse?

Meanwhile, suppose you aren’t planning to invest in either the Mafia or Bain capital: what is the system doing for you? 

At my bank in West Chester, you can buy a 2-year fixed-rate Certificate of Deposit (meaning you can’t get your money out without penalty) and receive the magnificent annual return of .4%, or 1/150th of the Mafia’s return last year. 

The rate of inflation right now in this country (April to November 2011, the last month available) is running round 3.5% annualized.  In other words, your CD can be expected to lose about 3% per year in real dollars.  Welcome to the 99%!