Full Court Press against Wall Street

I wrote the following letter to the editor of the Seattle Times today. Of course they won't publish it or any in a similar vein, even if more eloquently stated. They want government to have more say in where the funds of investors go (maybe to them).

"Today's editorial regarding Madoff and Wall Street reform avoids the question of what form regulation should take. Based on the track record of the current administration, it appears that the Madoff Affair is the cause celebre that is being used to usher in regulation that will give government control over important business decisions of financial companies. This is de facto socialism and is the goal of the executive branch and many in the legislative branch. Allocation of capital for its best use is the primary function of financial markets and only further disasters could come from government trying to play that role. Conflicts of interest, government corruption of business and visa versa, and outright fraud are enforcement problems that deserve more attention. We cannot allow these problems to be used as excuses for a power grab by the political operatives and technocrats who allowed and created those problems in the first place."

I think there is a real danger that the BHO gangsters are attempting to control finance so that they can better direct the flow of capital to their political allies and to themselves. Doing it through congress has its limitations. There seems to be a heightened attack right now against banks and investment companies. This also enhances the suffering public image of the Democrats and the BHO White House. Bankers are an easy target and we are seeing and hearing the most blatant populist styled propaganda being directed against them. Little matter that it is nonspecific in its calls for reform. The important thing to the left right now is to bloody the noses of bankers and Wall Street.

The current edition of Mother Jones is a prime example. The cover story: "Too Big to Jail" shows a monopoly style cartoon banker using his get out of jail free card. Two of the Mother Jones writers appeared on Bill Moyers tonight to deliver orchestrated one-two punches against capitalism. "Oh no, not against capitalism. We're for capitalism, we want to fix it. We're against them, the big bankers, who do those things..." they would claim while they employ every Marxist trick in Rules for Radicals. What bothers me is that they were so slick that 99% of the audience will be taken in. Of course, I am taking into account that since they're watching public TV, most of the audience is taken in to begin with.

This is very worrisome because finance and economics seems to be the biggest weak spot in the American public's collective understanding. The 'public' will go along with a bad idea wrapped in a populous cloak every time. With this administration, we can expect maximum exploitation of this weakness. With our defenses spread thin by global warming and health care, they will make enormous gains against liberty and democracy. With control of finances, they will be difficult to dislodge.

The American Banking Association chairman, Art Johnson, apparently was mildly successfully in holding back the congressional hoards while compromising on some regulatory changes. He was attacked on Bill Moyers. The bankers and Wall Street should make some sensible proposals for oversight aimed at preventing fraud and sharp practices. More importantly, they need to go on the offensive with public promotion of their ideas. American financial markets have worked because American securities are more secure. The industry needs a public image make over that will show that they are not avoiding regulations that will actually further that goal.

See my regulatory ideas in following posts.