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Dr. James Galbraith's Rx for Wall Street Reform

November 20th, 2009 at 09:46 pm

"The post-op on the great crash of 2008 continued in Washington Thursday as the Joint Economic Committee (JEC) held a hearing on financial reform.

'Unfortunately, the regulatory regime that failed so terribly leading up to the financial crisis is precisely the regulatory regime we have today,' Treasury Secretary Geithner declared. 'We need comprehensive financial reform.'

There is a way to have a financial system with a 'reasonable degree of stability' and 'serves a public purpose,' Galbraith says. 'But it does require having a government which is not run by the financial sector.'

Galbraith didn't use the term 'Government Sachs,' (see link to New York Times article in the attachment) but said 'we're not going to get where we need to get...if you have this revolving door where all the people from Wall Street go down to Washington and offer their services and basically serve their own worldview and the financial interests of their friends.'"

MED Comment: Arsonist or Firefighter? You can't wear opposing uniforms at the same time. Which one is it -- really?

Secretary Geithner served in key economic roles such as an Under Secretary of the Treasury for former Secretaries Robert Rubin and Lawrence Summers (current Director of the White House's National Economic Council for the President), and more recently as President of the Federal Reserve Bank of New York.

Clearly, Secretary Geithner and other members of the major insiders club who exercised powerful influence on the economy while shuttling back and forth between Wall Street and Washington -- in both democratic and republican administrations -- knew all to well the state of the "regulatory regime" during the 20-30 year period of time that our severly under code financial house of cards was being constructed.

Now that the house is on fire, these public displays of concern and outcry are following the standard script.

The media thrives and depends on obsession of all types. It is becoming increasingly more obvious how the tremendous focus given to the democrat vs. republican win-at-all-costs obsession is serving as a convenient sideshow distraction to divert the little guy's attention away from a power clique virus that, with no allegiance other than self-dealing interests, has targeted and infected the heart of our economic system.

It defies common sense to accept the notion that this inbreeding of revolving officials, who wear for show hats from all sides of the political spectrum, will suddenly in earnest stop enabling and start demanding from fellow co-dependent power club members -- with heavy interests in the status quo -- the kind of across the board transparency critically necessary to restore the health of our economy.

It's out there, but we need more of that real type of independent stand-up leadership that when the heat is on will not shy away from flipping on the lights to dissolve these veils that cover the hidden agendas of those -- on all sides -- whose priority is not finding real solutions to society's real problems beyond their own tight circles of self-serving interests.

Real change for the greater good sounds and feels warm and fuzzy, but it's just another empty slogan until you back it up.


http://finance.yahoo.com/tech-ticker/article/375918/%22A-Gov...

The New York Times - Banks Bundled Bad Debt, Bet Against It and Won

http://finance.yahoo.com/banking-budgeting/article/108476/ba...

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