stream of conscious
politics, business, maybe even some sports, why not?

regulation and the role of government

So I’d like to take a minute out of my day and address financial reform. Why the fuck is this even a debate? I use the word fuck with every intention of offending because I find every argument against regulating banks to be utter nonsense. Disagree? Well let me explain why.

What if we “deregulated” individuals? What if we got rid of law altogether? Would that be a pleasant world to live in? Of course not. So why do we think that banks and other financial institutions do not need to be regulated? Some may say they are regulated by the market, that the market itself will balance itself out. Really? Banks and companies in general, large or small, are run by people. Well no duh right? Then why do we think these people won’t screw over others just because they run a bank? Money is power so if anything these people should be watched closer as they have more power than Joe Sociopath. If you don’t think companies aren’t capable of screwing over people given the opportunity then look at Enron. But here I digress in generalizations and fluffy philosophy, let us look at the facts.

In 1933 Glass-Steagall was passed in response to the depression. In 1987 a fundamental part of the argument in defense of keeping Glass-Steagall centered around the fact that the securities business is risky and can lead to enormous losses which could in turn threaten the entire banking industry, possibly leading to government bailouts. Um… is that NOT what just happened? I mean can you blame the people responsible. They got to gamble with endless amounts of other people’s money. Then, of course, they lost all that money, but not before pocketing large sums for themselves after the initial gains. Yet knowing this, people are actually against enacting legislation to prevent this. Glass-Steagall is common sense. I would love some feedback, especially from those opposed to financial reform because this is incredibly simple. I can’t rob a bank, why should a banker be able to? It may be your bank, but its not your money.

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