Thursday, September 30, 2010

I Think We Are Screwed.

Barry Ritholtz wrote a post at the Big Picture on Monday titled The Left Right Paradigm is Over: Its You vs. Corporations which resonated with me as I read an article in The Economist concerning the banking industry's opposition to Elizabeth Warren as head of the new Consumer Financial Protection Bureau.

Ms Warren faces two main criticisms: that she lacks experience of how the financial industry works, and that she is predisposed to seeing the big banks as devious. She has talked of “tricks and traps” in the fine print of contracts, of Wall Street as an “old boys’ club”, and of the middle class as having been served up to financial firms “as the turkey at the Thanksgiving dinner”.
Has it really come to this?  Are Wall Street lobbyists so powerful that they can veto the appointment of a regulator simply because she is not inclined to take its assertions at face value?  We are in this mess because the prevailing regulatory policy for the last thirty years has been to the financial industry's judgment.  Unfortunately, the industry has become so powerful that it will not be possible to appoint regulators who will do anything about it.

I cannot help but wonder where the Tea Party is?  Everyday I hear some wingnut on the right railing about the debt that the government has incurred in bailing out the banks.  How about a little outrage at the banks that have completely captured the regulators?


  1. I saw that Ritholtz post, thought it was an excellent summation of what's going on these days. I suspect that tea party candidates are already getting donations from the big banks. That and, well you know, bankers are doing God's work.

  2. I agree with you Vinny and with you, Dan. I think the tea party started out half way decent. It was started with Ron Paul, who rails against banks. It's since been captured by corporate power and Paul has actually separated himself from them. As Paul receded Sarah Palin moved in.