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By William F. Gavin

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Nothing Has Changed on Wall Street

Posted on Sep 13, 2009
Flickr / Roger@elaws ?

A year after Lehman Brothers went under—taking a big chunk of the economy with it—the deregulation and lax oversight that enabled the crisis are still a problem. According to this New York Times report, things might even be worse.

New York Times: “Senior regulators who stood idly by for years as financial firms built their houses of cards have been rewarded with even bigger jobs or are jockeying for increased responsibilities. The Federal Reserve Board, for example, wants to become the financial system’s uber-regulator, even though its officials did nothing as banks made deadly decisions to lend recklessly and leverage themselves to the max.” [Link]

That’s assuming lawmakers get any traction working against a financial industry that has gotten everything it wanted out of this government.

Regulation is crucial, but so are regulators who are willing to jeopardize networking opportunities to keep their wards in check. Eliot Spitzer once joked that his crusading efforts against Wall Street firms were costing him friendships. He was the exception.  —PS

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By Spiritgirl, September 14, 2009 at 1:03 pm Link to this comment

“Eliot Spitzer once joked that his crusading efforts against Wall Street firms were costing him friendships.”

Yet another reason that Sir Eliot was taken out.  Except for Las Vegas where the house rules, everyone else operates with rules and regulations!  This same theory should apply doubly to Wall Street, where greed reigns supreme, and CORPORATE WELFARE SHOULD BE ENDED!  As these greedy bast—ds know no bounds, boundaries need to applied and enforced by civil servants that will be barred on exit from government service to enter that “private playground” - why because as Newt and others have proven, they know how to get around those loopholes!  And this is yet another reason that public funding of elections is a necessity if WE are to maintain our democracy!

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By tp, September 14, 2009 at 12:36 pm Link to this comment
(Unregistered commenter)

The new mythology will be in the jurisdiction of the BIS(Bank of International Settlement). That is if the far Eastern monetary system and South American social countries the don’t kick our untrustworthy dollar out of world trade during the next 20 years all of which, I suspect, will be in a deep world wide depression because of our deregulated super aristocratic opulent greed masters.

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By Old Geezer Pilot, September 14, 2009 at 7:18 am Link to this comment

Rahm Emanuel says, “Never let a good crisis go to

Wall $treet is taking full advantage of it. BBC
reported last night that people around the world
mostly approve of governments helping to stabilize
their economies.

In the past 10 years, the percentage of global
commerce denominated in US Dollars has increased from
60% to 80%, even though commerce with the USA is only
about 15%.

The US Dollar is becoming the official coin of the
realm, and the USA is the financial empire, and Wall
$treet is its army.

Think about it.

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Fat Freddy's avatar

By Fat Freddy, September 14, 2009 at 4:14 am Link to this comment

Nothing Has Changed on Wall Street

Of course nothing has changed. Why? Because banks like Citi, and BoA are still in business. And the smaller banks that were “allowed” to fail, were given directly to big banks, rather than letting the accounts be absorbed by the market. There are plenty of smaller banks out there that would have lined up to buy the “fire saled” assets of, not just the smaller failed banks, but the big ones like Citi, as well. There are about 8100 banks in this country. Most of them, the smaller community banks and credit unions, are perfectly fine, and would have used those assets to invest in local community projects, rather than risky derivatives and securities.

That’s the way Capitalism is supposed to work. The big ones get greedy, arrogant and make bad decisions. When that happens, the smaller, weaker ones feed on, and devour the carcass. That’s what can be called a “redistribution of wealth”. You gotta let old companies die to allow new ones to grow. Old money falls. New money rises. Pure capitalism is perpetual revolution. You need socialism to keep the establishment in place. Make no mistake, it was Socialism that bailed out the banks. And it was Socialism (the Federal Reserve) which allowed them to get so big in the first place.

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By C.Curtis.Dillon, September 14, 2009 at 1:26 am Link to this comment

I never really expected the government to get this right.  We have to remember that these people socialize together, attend cocktail parties together and benefit from the loose regulation of capital that flows all over Wall Street.  We should not expect for anyone to bite the hand that feeds them.  Politicians and gamblers (bankers) all possess very short memories and even shorter attention spans.  I’m sure they all suffer from ADHD.  They will find the next big racket and we will be off to the races again.  It is inevitable that this cycle continues until the financial system collapses.  We should all hope that happens soon.  Then, maybe, we can start rebuilding the system for our benefit, not theirs.

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By thebeerdoctor, September 14, 2009 at 12:56 am Link to this comment

When President BHO and the gang announce they are going to regulate Wall Street, you have to laugh at the ridiculous pomposity of the idea. Maybe it is just too early in the morning, but whenever I see Obama’s chief economics guru Larry Summers, I hear as a background song “Froggy Went A Courting”, as the former Treasury Secretary speaks of a “jobless recovery”.
But, as ChaoticGood pointed out, mythology is important, whether is is “the entrepreneurial spirit of the free market” or The Raiders Of The Lost Ark.

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By ChaoticGood, September 13, 2009 at 11:51 pm Link to this comment

We must be very careful to not regulate Wall Street to such a degree that they cannot continue to function.
Misrepresentation is the “heart and soul” of the Ponzi scheme known as the “Free Market”.  If we demand so much “truth”, that the real nature of the financial products are visible, then the Ponzi house might tumble. That’s why we bailed the Market out.  We need to protect the mythology.

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