That the recent economic downturn is due in large part to a bubble in housing values seems incontrovertible. That the housing bubble was due in large part to fraud in the financial sector again appears incontrovertible. That the fraud was the outgrowth of a lax environment brought about by the repeal of Glass-Steagall in 1999 and the rise of extreme libertarian thinking at the Federal Reserve, again, seems above argument. Greed rules, and given an outlet, will take it.
Our economy grew fine from 1933 until 1999 while Glass-Steagall was in effect. The ensuing bubble and economic disruption caused by its deflation would seem like something we'd like to avoid in the future. I know that I can see no reason why regulating the financial sector again wouldn't be the most prudent approach.
Now, I can understand that those who grew wealthy during the last decade (at the expense of a large portion of America!) would oppose regulation. I can understand why those who intend to make finance their vocation might oppose such regulation. And, I can understand why those who hope to make CEO (or at least VP) at a large corporation might oppose regulation - regulation would be lowering the ceiling for all of these individuals.
But what I don't understand is when the common worker takes up the call against imposing regulation on this sector. Why, when it is our hope for reasonable retirement that has been so cratered by the actions of a greedy few, wouldn't we ask that it can't happen again? Why, when our pensions are in dire straights due to cross investment in derivatives and default swaps, wouldn't we ask that such instruments be banned? Why, when we know of at least one of those 6 million American's who has recently lost their job, wouldn't our own empathy force us to ask for future protection?
Too many of those I know, who have the same stake in a stable economy as I, are still under the influence of the ideas that 'we' can't solve our problems. That 'we' can't impose regulations and stabilize the economy. That 'we' can't act in our self-interest - that to do so would somehow prevent those who, through their own self-interest, really drive the economy and trickle down benefit to all.
'We' of course, is acting in concert as the government. Somehow, in the land of Jefferson, we no longer believe in democracy. We believe in John Galt, in greed, that our fortunes are all tied to those few that drive it for the rest - and if they misbehave a little, it's okay.
That has got to be one of the all-time greatest victories of propaganda.
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