American Madness

Intelligent Criticism in the Service of a Better Nation

How can anyone oppose regulating the Markets?

Posted by Joel Friedlander | No Comments

Republican Dinosaurs Roam The Earth

Republican Dinosaurs Roam The Earth

From the NY Times today we read of a new Bill to regulate the Markets.Today the House of Representatives passed legislation aimed at curbing the worst excesses of Wall Street.  The bill would “…create a new consumer financial-protection agency to squelch unfair and abusive practices; and for the first time, regulate over-the-counter derivatives markets. The bill also contains provisions on executive pay, investor protection, credit ratings, hedge funds and insurance.”

An attempt to amend the bill was defeated.  Its opponents, “Conservative and moderate Democrats, joined by Republicans, argued that the new agency represented an unnecessary bureaucratic approach that would give the federal government excessive control over mortgages, credit cards and other financial products.”

Can you believe your ears?  Controlling mortgages, credit cards, and other financial products would be a bad idea.  Mortgages were a major cause of the economic crisis we’re now suffering in, credit cards are charging as much as 50% interest and have wrecked millions of consumers, and financial products, such as derivatives, and credit default swaps, nearly wiped us out here, not to mention cities and towns in Europe and elsewhere.  How can regulating these items be a bad idea?

“House Republicans harshly criticized the Democratic legislation, saying it could restrict the availability of credit, cause job losses and necessitate future bailouts of troubled businesses.”

Restrict the availability of credit!!  There is no availability of credit because of the excesses of the investment banks.  If we don’t control them they will go about creating another meltdown sooner, rather than later.

Lately, there has been some action in controlling executive compensation.  This is not control of executive compensation, it is control of the amount of money the gamblers can take out of the Stock Market Casino.  Firms argue that they can’t get the best and the brightest without paying them multiple millions in bonuses per year.  Well, what do they do to help the country?  The answer is nothing.  If we allow the “best minds,” to go into pure moneymaking for themselves, rather than into government, cancer research, or any number of other professions that will benefit the nation, we are encouraging the country to waste its most productive minds.

Oh yes, Harvard, which is the source of most of these greedy geniuses ought to be ashamed of itself.  After hundreds of years it has ceased to provide the country with a future of great achievers, except to the degree that those achievers produce only for themselves.

I have a friend who believes that when you die and go to your judgment the judge will ask you, “What did you do with the gifts that were given to you?” and decide on your fate accordingly.  Now, many of you don’t believe in that sort of thing, but IF IT DID EXIST, how many of the great financial achievers of the last 20 years could respond positively to that question?


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