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View Diary: Closely-Watched Court Decision Breaks Bad for Wall St. Has A Day of Reckoning Arrived? (154 comments)

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  •  How do people continue to deny that (23+ / 0-)

    the financial system is a top-to-bottom crime scene? Perhaps it sounds more reasonable and less far-fetched to use Bill Black's term, a criminogenic environment?

    Robert Teitelman on Slate has a book review touting William Janeway’s Doing Capitalism in the Innovation Economy: Markets, Speculation and the State. The book "serves as a refreshing relief to jeremiads from the left like Matt Taibbi.... [who] often seems to believe finance is essentially criminal..."

    To be fair, Teitelman also denounces conservative defenses of capitalism, which "arguing the case for a brutally divided society of givers and takers in which a tiny number of the former take risks and fuel growth that allows everyone else to bathe in self-indulgence." What should be noted, however, is that Teitelman was the former editor of Institutional Investor Magazine, which ridiculously biased in its support of Wall Street, hedge funds, and Big Money generally. Though it does sometime have interesting information about big pension funds, also.

    And there is supposed lefty Matthew Yglesias, who can't seem to stop himself from defending banksters against charges of criminality. Bill Black himself ruthlessly dissected Yglesias' latest nonsense a few days ago: Bill Black: Yglesias Pours the Geithner, Holder, Breuer (GHB) Banksters Immunity Doctrine in our Drinks.

    I've lately been reading Ron Suskind's newest book, Confidence Men, which details the how the Obama administration's economic policy apparatus was seized and neutered by the Rubinites. Now, I've mentioned this before, but I was a community organizer in Chicago the same time Obama was. But Obama was involved in efforts were limited to placing the band-aid of "retraining" on the seismic systemic shift taking place as the US economy wasde-industrialized, de-capitalized, and financialized. I was far more radical, and worked with a group denouncing free trade and NAFTA, the World Bank and the IMF, and what were at the time called off-balance sheet liabilities -- what we know today as derivatives. But the essential difference was that Obama accepted the legitimacy of "the system" while I never ceased arguing that "the system" was inherently corrupt and exploitative. And that's what it comes down to in the final analysis. Either you accept what has happened as a legitimate evolution imposed by "market forces" or you point to the criminal actions behind that evolution and scream for accountability.

    Just one example - if the entirety of the leveraged buy-out apparatus had been held accountable in the 1980s, not just Michael Milken and Drexel Burnham Lambert, but going after the real brains behind all the wheeling and dealing, like Carl Icahn;  Felix Rohatyn of Lazard Freres; Joseph Flom of Skadden Arps; and Martin Lipton of Wachtell, Lipton, the "financial engineering" of the past four decades would have been prevented. Joe Cassano, of AIG, for example, began his career at Drexel.

    A conservative is a scab for the oligarchy.

    by NBBooks on Wed Feb 06, 2013 at 07:14:49 AM PST

    •  "How do people".... (5+ / 0-)

      Is it just eyes wide shut or cynically working on Maggie's farm(club) of punditry as they aspire to be the next David Brook$$$? These days it seems only the most radical folk ever,like former Managing Directors of JPMorgan,are willing to write this:

      That regulators condone the continued use of these models and get pushed around on tougher capital and liquidity limits can only mean one thing: they have concluded that it’s simply too dangerous to the system to reveal that the emperor has no clothes.
      http://www.capitalinstitute.org/...

      "George RR Martin is not your bitch" ~~ Neil Gaiman

      by tardis10 on Wed Feb 06, 2013 at 11:10:43 AM PST

      [ Parent ]

    •  Excellent comment (4+ / 0-)
      Recommended by:
      billlaurelMD, Paper Cup, KJG52, Woody

      And you're right about the 1980's.  It's been a huge disappointment to see the same "financial engineering" practices from then come roaring back in the last several years, worse than ever.

      Even worse is that Dems opposed the corrupt system back then. Now we have a POTUS that naively embraces it.

      Democratic Leaders must be very clear they stand with the working class of our country. Democrats must hold the line in demanding that deficit reduction is done fairly -- not on the backs of the elderly, the sick, children and the poor.

      by Betty Pinson on Wed Feb 06, 2013 at 11:40:55 AM PST

      [ Parent ]

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