No Fault Capitalism
12 Nov 2009Exactly ten years ago, then President Clinton signed the repeal of the Glass-Steagall act. Our current financial mess has Clinton’s name written all over it. This is his legacy. It was his signature that started us on this path. It was his signature that is directly responsible for millions of people going destitute worldwide. Clinton signed into law the force that caused every common person’s life to be ruined. Clinton did it.
That day, when Clinton signed away nearly everyone’s future, a Democrat, Senator Byron Dorgan, dissented and noted that “I think we will in 10 years’ time look back and say we should not have done this.” Senator Dorgan was 100% correct. President Clinton was 100% wrong, and is 100% responsible for ruining the lives of millions across the world.
So, because we cannot undo what has been done, just as Clinton cannot unsay “I did not have sexual relations with…” what are we to do today? Why not ask the man who prophetically stated those words ten years ago? Senator Dorgan advocates now, as he did then, the following: separate investment banks and FDIC-insure banks; prohibit FDIC-insured banks from dealing in risky financial instruments on their own proprietary accounts; abolish “too big to fail.” Three simple principles and you don’t need a wet, juicy cigar to enjoy its beauty.
The first two principles really are common sense. It was ten years ago, but Clinton and his pals failed to see that. It is the third principle that is upfront and center with the average citizen today. How many times have we all heard that phrase “too-big-to-fail?” Translation: the government steals money from the taxpayers and saves these institutions who are now earning immense profits and handing out massive bonuses. In the meantime, what did the average citizen get? No job, no future, and a big government imposed burden. Meanwhile, the fatcats that were bailed out are getting bonuses larger than an average citizen would earn in five years. How is any of this fair?
Too big to fail is another term for what Senator Dorgan calls “No-Fault Capitalism.” In a nutshell, it comes down to the issue of accountability. "It’s one of the most frustrating things," Dorgan said. "We essentially have had modern-day bank robbers – except that they wore gray suits and not masks -and there’s been no accountability for it."
So has the current administration learned from anything from the Clinton life-wrecking disaster of 1999? Apparently, not a thing. The current administration is not aligned with Senator Dorgan, and appears to continue the bending-over that Clinton did for the big banks. JP Morgan and Goldman Sachs are pulling Obama’s strings and he doesn’t even know it.
Senator Dorgan expressed his disappointment with the current administration, stating “I would like to see them more aggressive on this issue” and he hopes that “we’ll get a piece of legislation that will restore that separation.” Well, despite the Hope platform that Obama ran on, it appears for the time being that there is no hope heading Senator Dorgan’s way.