posted March 10, 2010 12:32 PM         

something a lot of people do not know is that during eisenhower's and subsequent administrations the wall street lawyers TOOK OVER FOR PRivate BUSINESS (corporations who had the dosh) most of the so-called federal operations put in place by that nasty "socialist" roosevelt...

for instance did you know that the FDIC which is supposed to guarantee your money in the event of your bank failing...is underwritten (owned) by the INSURANCE COMPANIES we are struggling with at the moment?

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There are some things that define America’s soul. One is the notion, so eloquently expressed by Abraham Lincoln, that this Republic is “of, for and by the people.”

During the Bush years, we knew government was at odds with our individual, trickled-down good; now, we find that so much has transpired in favor of AmeriCo, there isn’t even a pretense of following Lincoln’s lead. The mythology favored by the conservatives is that private industry drives down costs and must be left alone to do so: the Ayn Rand-ian argument that Alan Greenspan was shocked — SHOCKED — to discover rested in the hands of those refusing to self-regulate.

This would be a good time to plug in an old favorite YouTube from earlier in this century: “Supply Side Jesus,” narrated by now-Senator, Al Franken.

As the administration attempts to moderate the egregious activity of the banksters and insurance industry, we’ve come nose to nose with the power of corruption and the stonewall of those who think lack of regulation is the American model. For instance, Obama recently proposed regulations suggested by Paul Volcker. As Huffy reported, Volcker is no radical. He’s a former Fed chairman from years back, but Volcker knows a scam when he sees one. The Volcker suggestions, along with an independent Consumer Protection Agency, are part of the greater reforms that are ruminating in Congress. Retiring Senator Chris Dodd is attempting to thrash out a deal in committee, but he’s meeting … and evidently capitulating to … the Party of No.

A new piece of this was announced recently. The “Too Big to Fail” banks with more than $100 billion of assets will be overseen by the US Federal Reserve. This is touted as a victory for the “central bank” — that’s the Fed, the private bank that has almighty power over the Almighty Buck in this nation. One more time, finance will regulate itself. Insiders will continue to promote supply-siders.

The focus of this post has to do with one of the remaining deals on the table, still undecided. The Consumer Financial Protection Agency needs to be in the hands of an independent regulator if the peoples needs are to be served. My hero, Elizabeth Warren, makes it clear that a bad bill is NOT better than no bill, at this point. Paul Krugman seconds the motion. Even rich guy and folk hero Warren Buffett decries the lack of oversight and regulation that is crippling recovery.

Warren and Dodd are on the same page regarding the necessities: a presidentially-appointed director, confirmed by the Senate; a separate funding source; rule-making and enforcement authority. The problem is the umbrella under which this Agency looks destined to reside. The bipartisan agreement that’s being negotiated will install the CFPA under the Fed’s wing, where it will be seriously compromised.

Warren declares this as unacceptable, and when straight-talking Rep. Barney Frank heard the rumors, he had this to say: “I thought that was a joke. Even by Senate standards, that’s mind-boggling.” Then he added a critique that should make everyone’s hair stand on end: “The Federal Reserve is undemocratic, it’s non-transparent, it’s elitist, it’s arrogant.”

The Federal Reserve itself is coming under further scrutiny — decades too late, in my opinion — and that should be a priority for reporters everywhere; but it isn’t. One of the few economists I trust, Nobel laureate Joseph Stiglitz, argues that the Fed has become systemically corrupt. Warren knows that, even Dodd knows that. But unless WE know it — and ask the appropriate questions, nail the politicians that keep the lid on all these bubbling pots — nothing will change. This is Wall Street double-speak that Main Street needs to develop an ear for … or pay a price even higher than this current challenge that’s giving everyone fits.

All those who wail that they don’t trust government might be better served by understanding that the Fed has power that reaches into the lives of every citizen, rich and poor, bureaucrat and blue-collar worker, alike … and nobody but the Gods of Wall Street watch over them.
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i'm afraid, folks, that "trickle down economics" has played right into the hands of the faceless moneymen who are currently apparently reaping most of the benefits coming from the (completely indebted)government's attempts to stave off total collapse.

so much as i agree with jwhop that COMMUNISM as practiced in the ussr and other totalitarian regimes is NOT somewhere we want to go, unless the govt can REGULATE some of wall street's activities, and the banks in general, we are in for the next phase of the impulse that forged the third reich...

the republicans seem to think this is just a game and maybe it is for them. as long as their palms are greased nevermind the rest of us, and that INCLUDES THOSE WHO HAve BEEN PROSPERING IN THE LAST two decades. the little man will be wiped out.