McCain and Wall Street

"The government was forced to commit $85 billion," McCain said in a statement. "These actions stem from failed regulation, reckless management and a casino culture on Wall Street that has crippled one of the most important companies in America."

It's funny, McCain and the other Republicans (former McCain Financial Policy adviser Phil Gramm) passed the Gramm-Leach-Bliley Act in 1999. On the surface it was in my eyes truly a modernization act. It allowed Banks, Investment Banks, and Insurance firms to become one. Not the end of the world and not necessarily a bad thing at all.

This paved the way for Gramm's new bill, the Commodity Futures Modernization Act of 2000. Here we saw a bill that ensured unregulated creation and trading of Credit Default Swaps, Collateral Debt Obligations, Mortgage Backed Securities. And that's where we are today, a day after AIG was spared by the Treasury, Lehman brothers was allowed to collapse and the financial sector is in misery. With this bill, the Republicans allowed the financial sector to regulate themselves. When has self-regulation ever worked? When? Casino Culture indeed Senator McCain, your friend Mr. Gramm created this mess and you signed onto it in the 2001 Fiscal Year budget. Let's not forget all this time, McCain was the chairman of the Senate Commerce Committee. Where was John McCain the last 8 years when all of this de-regulation was going on? I don't remember him speaking up or against any of the deregulatory bills. The fact that he has done an about face today, just shows you who we have running for President.

McCain wants a commission for the market collapse

McCain has said that he would create a commission to investigate how and why our stock market had such a huge collapse these past few weeks/months. I say, bring it on, let's have a commission. Maybe we can finally discuss industry deregulation. It's always been a game for Wall Street to invent ways to make money before the SEC comes in and says something. It just so happens that we let them go so willy nilly this time, that they dug themselves a very large hole and won't climb out of it in one piece. That's just what happens when you let greedy ambition run wild. Commission? Sure, maybe McCain will discover the role his own advisers like Phil Gramm played in this whole mess.

I hope Americans all realize who is going to pay for all of this, it's a double-edged sword. For everyone whose 401k/IRA accounts got shafted, that was the first blow. The second comes when people begin to realize that it is the American tax payer who will be shouldering the burden, the burden of bailing out AIG, Bear Stearns, Fannie and Freddie... This is money that we could have been doing other things with. Things like healthcare, education, etc. It's funny in the back of my mind I keep hearing George W. Bush's words, that we shouldn't increase taxes on the wealthy, because the wealthy have accountants to get them out of paying for taxes. Whose that leave? That's right, it leaves you and I, the middle class. Thanks guys.

less government in business, more business in government

I've always thought of George W. Bush as the MBA president, running the United States as if it was a multinational corporation (albeit with a inept CEO at the helm). For the last eight years, it has seemed to be the singular mission of the Bush administration to outsource government and let business run it. It came as no surprise that they brought in Blackwater to fight our wars, and even less when industries began to deregulate with the industry policing itself, driven by the whim of a free market economy.

This in some cases, makes for more efficient government and a more aggressive economy, but in many other cases, you are throwing the public interest to the wolves. The most recent, and most egregious that comes to mind is a proposal to make changes to the Endangered Species Act which would "streamline" the protection services of the Department of the Interior. What the proposal really does is to remove mandatory consultation from government scientists, so that what goes on the endangered species list and what factors contribute to extinction of a species becomes the responsibility of a department that oversees conservation and land development.

Quote from the MSNBC article: http://www.msnbc.msn.com/id/26143098/
Interior Secretary Dirk Kempthorne said late Monday the changes were needed to ensure that the Endangered Species Act would not be used as a “back door” to regulate the gases blamed for global warming. In May, the polar bear became the first species declared as threatened because of climate change. Warming temperatures are expected to melt the sea ice the bear depends on for survival.

The reasoning offered up for this is that since we don't know/can't make correlations that global warming is a contributing factor to species extinction (uhhhhhhh we can't?) the DOI doesn't need to seek experts on climate, ecology, etc. They can decide for themselves. Additional reasoning is that the Endangered Species Act has been around for long enough that government agencies and private land developers and land owners know best how to take care of species that fall within their boundaries and plans; they don't need to waste time consulting the experts. I can just see the level of abuse this is going to open the floodgates for rampant disregard in the name of efficiency and money.

How business friendly.

http://www.msnbc.msn.com/id/26199580/
Again, none of this is unexected. I was surprised however, to see that today, George W. Bush, signed a bill banning lead in toys. Whaaaat? This is one of the few times I've seen this administration step forward to regulate the private sector. I would have expected Bush to offer the veto pen and say that it should be up to businesses to regulate themselves and consumer displeasure to manifest itself in corporations bottom line. Maybe the legislation was veto proof, or maybe you'd look heartless by not passing it. Whatever the reason, this represents a stark difference from the business friendly legislation pushed during the last 8 years of Bush.