We have had some debate as to which political party is in Wall Street*s pocket. Obviously, the entire system is somewhat corrupt, but one party wants to regulate the crooks and the other wants to look the other way... If you can guess which is which, then you know who is who.
The plan is: Let Wall Street run unfettered under the guise of fiscal responsibility, even though the cost of these regulatory agencies is a pittance in relation to the cost of financial fraud, crisis and collapse.... Send that to your congressman....
Republicans may starve financial reform of cash...
Republicans in the new Congress could put the budget squeeze on two powerful regulatory agencies to slow President Barack Obama's crackdown on Wall Street.
A Democratic-controlled Congress pushed through the Dodd-Frank bank reform laws last year and regulators were counting on a big budget boost to police the $600 trillion over-the-counter derivatives market -- blamed for much of the excess behind the 2007-2009 financial crisis.
But the last Congress failed to deliver on the funding, and that will be even harder to obtain with Republicans vowing to cut spending as they take control of the House of Representatives and boost their rolls in the Senate.
Yeah, let's have another round of unregulated synthetic CDOs, those really worked out well a couple of years ago. That is, if you think privatizing profits and externalizing losses is a good thing. Maybe Moodys will rate them triple AAA just for old time's sake.
Given the bonuses on wall street, based largely on the availability of nearly free money courtesy of the government, evidently we're OK with a "heads I win, tails you lose" deal with Wall Street. It's pretty discouraging the degree to which Wall Street owns the political process, pretty discouraging that so few people were punished or asked to disgorge ill-gotten gains from all the shenanigans leading up to the bust. If some punk steals a mower from my garage, the law knows what to do, but when investment banks make billions selling AAA toxic assets to the trusting public, the legal process seems utterly at a loss.
If the republicans are serious about no more bailouts for future WS busts, they'd better take up Volkker's position. Banking should be boring, financial "innovation" has almost exclusively benefited those inside the system, and the casino portion of the financial business should be walled off from the part we all need.
Don't hold your breath waiting for that to happen.
Do you actually think Obama is any different than any Republican? Let's not forget who writes his scripts. This is a one party nation, and anyone who doesn't get that will hopefully find pleasure in banging their head against the wall.