Skip to main content

View Diary: Wall Street just got what they paid for. That's why I'm running against Grassley (148 comments)

Comment Preferences

  •  yes. (15+ / 0-)

    I'm an anti-trust lawyer.  I understand the dangers our democracy faces from overwhelming financial power.  

    •  Thank you for the excellent answer, (4+ / 0-)

      It will take courage to stand up to Summers, Giethner and Bernanke on this issue.

      Summers sums up the opposition's position well,

      "Brown: The too big to fail issue, why not go further? Why not just limit the size of banks?

         Summers: Jeff, that was the approach America took to banking before the depression. That was the approach America took to lending in the thrift sector, before we had the S&L crisis. Most observers who study this believe that to try to break banks up into a lot of little pieces would hurt our ability to serve large companies, and hurt the competitiveness of the United States. But that's not the important issue, they believe that it would actually make us less stable. Because the individual banks would be less diversified, and therefore at greater risk of failing because they wouldn't have profits in one area to turn to when a different area got in trouble. And most observers believe that dealing with the simultaneous failure of many small institutions would actually generate more need for bailouts and reliance on taxpayers than the current economic environment.

      It is ironic that this quote is so appalling given that the Obama administration has been showing more steel on taking on Wall Street in some ways, and has been effectively fighting back against Republican efforts to completely neuter the bill in terms of at least some issues. I have also been pleased at Obama's political positioning on the issue, finally showing some populist message talking points on the issue. The Summers quote is awful, though - quite possibly the worst quote I have ever seen from this administration on the banking issue, and that's saying something because there have been lots of disappointing ones. Summers historical references are inaccurate and completely misleading: to imply the reason for the Great Depression and the 1980s S&L fraud crisis were due to the companies being too small is laughable and absurd. In fact, the Great Depression and the S&L crisis, as well as the 2008 financial meltdown, were all caused by the same thing: too little oversight over financial institutions that were too economically and politically powerful."

      "What is the robbing of a Bank compared to the FOUNDING of a Bank?" Bertolt Brecht

      by thethinveil on Tue Apr 27, 2010 at 08:03:00 AM PDT

      [ Parent ]

    •  Excellent answer. (0+ / 0-)

      I'd love to replace corporate stooge Grassley with an anti-trust lawyer.  

      The supremacy of finance capital over all other forms of capital means the rule of the rentier and of the financial oligarchy -- Lenin (1917)

      by GiveNoQuarter on Tue Apr 27, 2010 at 01:04:33 PM PDT

      [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site