Elementary School Washington DC
Tuesday, January 25, 2011 at 12:42PM For the past couple of weeks, I've been tucked away in 1929, finishing up revisions on my historical novel, Black Tuesday, for my agent. But, coming up for a breather, it seems to me that Washington is stuck in a time warp of its own, only its mentality is far more juvenile then back then.
First, there's today's pre-announcement from the FCIC (Financial Crisis Inquiry Commission) regarding their pending announcement expected this Thursday. The commission will report their findings regarding the reasons behind the financial crisis and recommend that the Department of Justice do some more investigating. And that would be really special were it not for the fact that unlike in 1933, the so-called financial reform bill already passed before these findings were completed, plus, the findings aren't even unified.
Now, not only is the banking landscape as loosely regulated as it was before the 1929 market crash and Great Depression, but the inquiry commission's solution is schizophrenic-partisan. Six Commission Democrats think that the crisis was a result (more or less) of greed, fraud, and general shadiness (none of which the reform bill does anything about), three Republicans think it was because of the government sponsored entities, Fannie Mae and Freddie Mac and giving poor people the chance to buy homes, and one Republican wants to have a think and create a third super-minority report.
The Pecora Commission's findings in 1933 blasted the banking community and resulted in actual structural reform, like the Glass-Steagall Act which split up the risk-taking from the deposit taking institutions which received subsequent federal support, the Securities Exchange Act of 1934 that established the Securities Exchange Commission (which needs a total overhaul today, but for real, not for rhetoric), and the Federal Deposit Insurance Corp. to back citizens' deposits at real bank holding companies (not ones like Goldman Sachs and Morgan Stanely that faked that status to get Fed. access.)
Today's findings are a sad reflection of partisan leanings and childish one-upmanship, not of a rigorous intent and dedicated desire to reduce unnecessary financial and economic risk and concentrated institutional power. As such, they will not and can not possibly make a real difference.
Elsewhere in Washington, as it gears up for Obama's State of the Union Address tonight, which has already been pre-punditized to-death, members of the Supreme Court, notably Justice Alito, are exhibiting a kind of 5th grade type hissy fit over whether they should attend, because Obama was mean to them last time. In addition, various news shows are running reports and analysis over which politicians will be sitting next to which other politicians, kind of like being back at the cafeteria. Yes, it's all politics as usual, but also somehow, gets a whole lot more juvenile every year.
Reader Comments (9)
We can expect the childish behavior to continue in this scripted reality soap opera called Washington with one of the biggest grandstander crybabies around, Boehner. I go to college and the students are oblivious as to the goings on in this country. There is a mean, narcissistic sociopathology that keeps students self-absorbed. That perpetual state of adolescence will come to roost one day when that generation comes to power, that is, if there's anything to inherit. Thank God we have Nomi to keep up the good fight. Love on ya.
Brien - That's depressing, being too self-absorbed doesn't give one much of a chance for learning. Sounds like you're in a good position to try to point them in a better direction. Nomi
Nomi, I love your commentaries. The honesty with which you speak is refreshing. Thank you!
Thank you, Dina!
Those unfortunate appointments of Obama's to the FCIC (exceptions: the honorable Phil Angelides and Brooksley Born) remind me of Bernanke's papers on the Great Depression economics.
Bernanke completely ignores any and all effects of Prohibition, which lasted from 1920 to 1933 and acted as a tremendous tax cut (no more revenue collection from all that alcoholic imbibing), as well as dark pools laundered through the stock exchanges.
Like Bernanke, those unfortunate strategic appointments of Obama's refuse to acknowledge bankster involvement, the existence of "shadow banking" -- the specific effect of securitizations and credit derivatives gone wild.
To the sane person, such behavior is both lunatic and reprehensible.
Without an FDR, or even a Teddy Roosevelt or John F. Kennedy (the last true democrat, I firmly believe), America can kiss any future good-bye.
Bernanke also ignores some of the Fed's own reports going into the crash and the Depression. More on that in my next book :)
Hi all
Just a brief note.
In the 1960's it was called Printing Money,now its called Quantative Easing,sounds like a LAXATIVE, need i say more.
P.S. Start Planting Vegetables if you have a Garden !!
Nomi, when can we expect your next book to come out?
hey Debbie
thanks for asking. probably not until 2012 sometime, I'm still waiting to hear from perspective publishers on my historical novel, and still working on my non-fiction book.