Federal Reserve vs Congress: Lesser of Two Evils ?
I was invited to testify this week to the House Financial Services Committee about reform and regulation.
I politely demurred.
Quite bluntly, I didn’t see how speaking to Congress would matter one tiny bit. Its not like they seem to be paying much attention to witnesses, or have very much interest in figuring out what was the cause of the crisis. Besides, they seem to be beholden to those whose interests are to not fix the problems at hand.
While I have been critical of the Federal Reserve (especially the Greenspan years), my beef with them has been their judgment and decision-making process. Congress, on the other hand, is a whole different matter. Its not their judgment, but rather, the fact they are owned not by the American people, but by lobbyists, and corporate interests. They have become structurally deformed.
How weird is it for me, who spent so many pages blaming the Fed for much of the recent crisis, to find myself in a position of defending them from outside political pressure? The choice we face is the recent Fed regime of secrecy, nonfeasance, irresponsibility, and easy money — versus something possibly likely to be a whole lot worse.
To be found in “contempt of Congress” would require an improvement in opinion of them.
If the Fed has been a major source of problems, Congress is much worse. They were the great enablers of the crisis, readily corruptible, bought and paid for by the banking industry. Even AFTER THE CRISIS, the lobbyists seem to own the place. Thus, I fear Congress is the worse of two evils — lacking in objectivity, incapable of producing legitimate regulatory review.
If the Fed is Wall Street’s bitch, than Congress is the Street’s whore.
You can see why going to DC is probably a good way to get my ass thrown in jail. Most scenarios I envisioned end with me trying not to respond with a list of the campaign donations that were made to the congressional questioner. I pictured myself responding not to the “Senator from the great state of Texas,” but rather, to the “Senator representing the great state of AIG.”
In my mind, these back and forths all go badly. Visions of Jack Nicholson barking YOU CAN’T HANDLE THE TRUTH comes to mind. Or worse, Al Pacino yelling, I’M OUT OF ORDER? THIS WHOLE PLACE IS OUT OF ORDER!
I leave the great chamber — or rather, am led out — in cuffs.
~~~
If anyone can give me a good reason to spend a day in DC testifying to Congress, I am all ears. I was unable to think of any; maybe the crowd has some special insight.
September 26th, 2009 at 9:14 am
Now that we have 100 comments, a confession: I omitted above the small issue that I was tagged on short notice (less than a week), and already had several commitments, including NYSSA, that I did not want to break.
But I do feel that it would be a) a colossal waste of time and 2) accomplish nothing.
If I felt like it would do even a tiny bit of good, nothing is stopping me. It simply seems like a giant time suck
September 26th, 2009 at 10:28 am
Accept the invitation, formally request they read Bailout Nation into the official congressional record as your testimony, then unequivocally state, “I have no further comment,” and go visit some national monuments before heading home.
September 26th, 2009 at 10:33 am
i am with you on this….the congress is completely owned by lobbyist….how many have cried foul at the hundreds of billion distributed via AIG…which we will never see again.
September 26th, 2009 at 10:36 am
I disagree, we know Congress is bad, that,s a known known. We think the Fed is less bad but it’s a unknown known.
Lets see if they comply with the Bloomberg FOIL suit and then lets audit them. Then we might have enough info to judge them better or worse than Congress.
September 26th, 2009 at 10:41 am
Well… it would make for some great TV and Youtube videos. How much publicity do you want, and how much do you want to pay for it?
BTW, thank you for having convictions.
September 26th, 2009 at 10:42 am
“Secrecy is the freedom tyrants dream of”
Bill Moyers quote
September 26th, 2009 at 10:43 am
sorry, your reasoning doesn’t cut it, at least with me…
what is the difference between those who see the wrongs and are in a position to speak out & be a catalyst for positive change because of their standing in life, however, that might be perceived, and don’t because they fear prosecution (or persecution) and those in Nazi Germany who acquiesced under Hitler?
of course, my comparison of the current political landscape in the US with the horrors of Nazi Germany will be dismissed if not scoffed at by many, but more than a few respected bloggers have already commented that the US is in the process of becoming a fascist state …see http://www.lewrockwell.com/rozeff/rozeff211.html (Congressional Chief of Staff for Ron Paul, for just one example.).
your views about Congress certianly don’t serve to suggest otherwise, yet you openly admit to lacking the courage to speak out, much less stand against it. that sir, is a shame. guess that might inconvenience you from enjoying those big boats & fast cars too much huh?
September 26th, 2009 at 10:48 am
I agree that Congress is bought and paid for but the Federal Reserve is 100 times worst. Its behavior is secret, its members are not elected, they are appointed. Read Ron Paul’s End the Fed and about Bilderberg.
September 26th, 2009 at 10:53 am
At least, you’d get a chance to tell them what you think face to face.
Stay civil and honest and you’ll walk out a freer man.
September 26th, 2009 at 10:53 am
“If the Fed is Wall Street’s bitch, than Congress is the Street’s whore.”
So, a bitch is worth defending over a whore? Here’s one good reason for appearing to testify: it’s your civic duty. JFK was correct when he famously said, “Ask not what your country can do for you, but what you can do for your country.” Too many of us take the freedoms and opportunities available in this country as a birthright. It’s not. We have to fight everyday to maintain these freedoms. I know we all want to wake up and do whatever we want to do when we want to do it. However, someone has to do the dirty work to maintain this country. There are tens of thousands of brave men and women defending this country here and abroad (exclude Iraq if you please), the least you could do was attend a congressional hearing and impart a bit of your substantial knowledge to a broader swath of the American people. I think it would have made a big difference.
September 26th, 2009 at 10:59 am
Let me get this straight.
You chose good manners over the public good. Many people would beg, borrow, and steal to be in the position to tell Congress that IT is big part of the problem. But not you. It would be rude to actually confront the problem when given an invitation to do so. You blew it, chicken. You have credibility and prefer to sell it rather than use it. Everyone else does, so you’re not alone, but I think it is disingenuous to complain about the problem on a daily basis but not do anything about it when handed the opportunity to make a difference.
Would you change the world? Probably not. Might you be the first one in a continuing line of honest and public confrontation? Maybe. Might that make a difference if it catches on? Certainly, because it is out in the public and in the sunlight.
You should reconsider the invitation if you have that option.
~~~
BR: You raise a valid point —
but its not the manners — its the handcuffs I am concerned with!
September 26th, 2009 at 11:00 am
Yo, Cursive … Well said.
September 26th, 2009 at 11:05 am
So, you spend a big part of your life blogging about the crisis and the FED’s impact on it, you write a book about how the FED’s actions contributed to the crisis, you are held in such high esteem that the legislative body seeks your advice giving you the opportunity to possibly influence legislation and make real change, but you decline the invitation?
You’re willing to debate any knucklehead risking up to $100K about how significant the CRA was to the crisis just to satisfy your ego, but you’re unwilling to spew a few words before Congress that may influence legislation and actually change the system for the better?
I don’t get it.
September 26th, 2009 at 11:07 am
“If anyone can give me a good reason to spend a day in DC testifying to Congress, I am all ears”.
If the testimony were to be on CSPAN, or otherwise covered by the media, the exposure wouldn’t hurt. And who knows? You might change a few minds.
September 26th, 2009 at 11:10 am
BR,
If you don’t want to do it, maybe you can send Peter Schiff in your place.
http://www.schiffforsenate.com/
September 26th, 2009 at 11:20 am
BR,
It would be pointless to go in the sense that testimony would do little to move the direction of the debate or induce reform, but it could be beneficial to yourself personally as you could leverage the appearance to meet likeminded people or legislators that aren’t beholden to lobbyists (rare). It could be a great opportunity, but if it really appears likely that you will go to jail, though if Joe Wilson didn’t it would be hard to see why you would, it would be worth going on.
September 26th, 2009 at 11:20 am
Don’t let imagined fears keep you from going. They should entice you to go. Hell, BR, we can raise bail in NY minute…..
September 26th, 2009 at 11:30 am
And yes, I am familiar with PJ O’Rourke’s Parliment of Whores
September 26th, 2009 at 11:36 am
Barry,
You need to get some churchin’ up on American history. American democratic theory has always assumed the existence of a single “national interest,” but as Walter Lippmann pointed out in the 1920s, there is no such thing. What we have is a free market of competing interests, and certain interests rise above or below the others at certain times. This isn’t a bad or a good thing; it’s just reality. IE, what’s good for the banks isn’t necessarily what’s good for the small farmer. What’s good for the trust fund baby isn’t necessarily what’s good for the Wal-Mart employee. What’s good for the desert resident isn’t necessarily what’s good for the man who lives in New Orleans.
Name a period of American history, and I’ll wager one can come up with an “in” interest and an “out” interest: for much of the 19th century, the slave states held power in Congress despite being a minority group. The railroads owned Congress in the post-Civil War era. During the 1890s, monopolies owned the Congress. In the 1920s, corporations and the ultra-rich ruled the place. In the 1930s, Southern Democrats held an inordinate amount of power and retarded further reform. Etc..
Congress is always “owned” by someone, but plenty of necessary change has been accomplished anyway. That’s because controlling Congress is a two-stage process: First, you must buy the politicians. Second, the public must tolerate or ignore the latter.
September 26th, 2009 at 11:45 am
We are subjects of a Fascist regime. The difference between the Fed, the Congress, and their corporate pimps is nil.
All that is necessary for evil to triumph is for good men to do nothing. Speaking truth to power takes courage, above all else. It would be very difficult for these thugs to spin the truth if that truth was stated in a public forum.
Jail In DC? I’d be there to bail you out within 20 minutes (I’m sure you’re not a flight risk), and I’m sure everyone here would donate to your defense. The best strategy would be to preface all statements as opinions, and then to offer facts in support.
On the plus side, there is no such thing as bad press.
If you get a similar opportunity in the future I hope you accept and raise holy hell.
September 26th, 2009 at 11:46 am
Shit, Barry. I agree with Dead Hobo, completely.
Who knows what might happen if you testify? Maybe a subsequent YouTube video of you testifying goes viral — giving you publicity far beyond your usual audience.
I hope you run for office someday. Please go get some exposure and experience in front of Congress.
September 26th, 2009 at 11:47 am
The Fed is essential.
You just can’t have ideologues like Reagan nominated ideologues like Greenspan. You just can’t have ideologues like Bush nominated ideologues like Bernanke (though Bernanke’s improving. ) Heck, even Greenspan’s mea cupla ends the economic right-wing ideology (for a time.)
It’s all about who’s in charge, people with character or not. The People elect Congress… they vote based on their feelings, they hear about “Death Panels” and believe Sarah Palin rather than investigate. it themselves. They believe nutty ideas from Bush when he says he he against (two generations of) nation-building. They “feel” that tax cuts will “pay for themselves.” Even though it already failed under Reagan.
It’s the people who vote for Congress, voted for Bush twice, etc. They get what they deserve (Gov’t fund their campaigns, and things would be very different.)
Testifying for Congress is a privilege, and honor, a duty. Go for it. Have your facts 100% straight, but go for it.
While you’re up there, ask Ron Paul if he can talk some other tiny country (Micronesia comes to mind) to experiment with his gold-based nuttiness. It was shown not to work here, there, and everywhere in the past. Give the kid a little play ground for his right-wing experimentation (then short Micronesia’s market.)
September 26th, 2009 at 11:50 am
I also don’t understand how you could “neglect you civic duty” to elucidate the truth before congress
perhaps
Now it gets personal!
Perhaps you’re afraid the Congress will ask you questions about someone in the Financial world you know (and may even like) who bent the rules in their favor….
This is a the only valid excuse in my eyes Barry
September 26th, 2009 at 11:54 am
I am not sure if it is a question of one replacing other. Wall street owns all the cards. They play the cards to suite them to the situation.
September 26th, 2009 at 11:54 am
Do it for the lulz.
September 26th, 2009 at 11:56 am
Anyone that believes that BR’s testimony or anybody”s testimony will influence the legislation is naive, to put it mildly. The legislation will be decided by the industries and their legislative whores that will be “regulated”.
September 26th, 2009 at 11:57 am
I agree with some of the other posters here, you should reconsider.
“For of those to whom much is given, much is required. And when at some future date the high court of history sits in judgement on each of us, recording whether in our brief span of service we fulfilled our responsibilities to the state, our success or failure, in whatever office we hold, will be measured by the answers to four questions: First, were we truly men of courage… Second, were we truly men of judgement… Third, were we truly men of integrity… Finally were we truly men of dedication?”
Speech to Massachusetts State Legislature, Jan. 9, 1961
September 26th, 2009 at 12:00 pm
VennData Says:
September 26th, 2009 at 11:47 am
“The Fed is essential . . .”
“. . . gold-based nuttiness. It was shown not to work here, there, and everywhere in the past. Give the kid a little play ground for his right-wing experimentation (then short Micronesia’s market.) . . .”
_______________
The Fed is not essential, and gold is (as will be shown when the international fiat horse shit dishonesty implodes) the defacto basis for any monetary system (unless something tangible is discovered or implemented that has all of the characteristics of gold).
When the final bill for our debt comes due, it will be paid in gold or blood.
September 26th, 2009 at 12:01 pm
Because you’re one of the few who are willing to tell them what they don’t want to hear.
Because you’re the only one who can tell them what it is you’ve been trying to tell the whole world through the blog and you’re book.
Because you’re the only one that has the broad-scope/detailed understanding of the whole mess.
Because you’re the only one that can tell the story with your conviction.
Will they listen? Will it matter? Will it make a difference? Will it result in positive change? Irrelevant! None of that will happen if you don’t make the effort.
September 26th, 2009 at 12:01 pm
Methinks far too many here overweight the value that Congressional testimony adds to the legislative process.
September 26th, 2009 at 12:05 pm
emmanuel117 Says:
“Methinks far too many here overweight the value that Congressional testimony adds to the legislative process.”
____________
As opposed to the “value” of doing nothing?
Doing the right thing can be dangerous and futile. It’s still the right thing, and it must be done.
September 26th, 2009 at 12:06 pm
You can get ideas out in a way most people can’t. Any time the corruption of Congress is highlighted, it’s for the good. And why not cite major funders of Congressional questioners? Nothing illegal in that. Fortunately, USA is not yet Russia or Africa or Latin America where such testimony really CAN get you killed.
I think you should consider using the megaphone your blog and book have given you … Most of us don’t have one!
September 26th, 2009 at 12:06 pm
I’m a little disappointed in you, Barry. I second the comments of Cursive, Dead Hobo, Groty, and MA. You have been given an opportunity many Americans with a clue would pay handsomely for.
September 26th, 2009 at 12:08 pm
I think you should send Eddie Murphy to testify in your stead, at a closed door session with a hidden camera/ mic.
His erstwhile partner, a grizzled DC veteran looking for one last shot to take on the system could be recording it all from a van parked across the street.
hilarity will ensue.
I predict first weekend gross receipts of $30 million domestic.
it’s all a great big comedy anyway.
September 26th, 2009 at 12:09 pm
Because if you don’t, all they’ll hear is what everyone else is already saying.
September 26th, 2009 at 12:12 pm
I understand Barry’s ultimate decision but I can’t help being taken back to what Ben Franklin was purported to have said on the steps of the Continental Congress when a woman asked asked him what the body had given us in 1776. He responded (apparently) “A republic, if you can hang onto it.”
September 26th, 2009 at 12:16 pm
@dougc
Marie Antoinette called and she wants her “cake” back…
September 26th, 2009 at 12:18 pm
do it. then maybe it’ll get you on The Daily Show. but do it anyway (besides if you don’t go they’ll give the slot to someone from Kudlow’s octobox) just do it.
~~~
BR: TDS ? That is the best reason I’ve heard so far . . .
September 26th, 2009 at 12:19 pm
It’s a rare opportunity at a critical time – take it!
September 26th, 2009 at 12:20 pm
You gotta do it, man. It’s a chance to take your message mainstream instead of us contrarian/libertarian nuts. We’re counting on you. If you don’t do it, you’ll always wonder what could have been.
September 26th, 2009 at 12:24 pm
@MA 12:05
+1 to that and your other comments. And dead hobo, thanks. BTW, I watched ESPN classic of the Douglas/Tyson heavyweight fight from 1990. I guess Buster Douglas was considered naive to think he could have “shocked the world.” Well, Mike Tyson was dazed, looking for his mouthpiece and counted out in the 10th round. Power is only strong when it works. The FR is not working, it is crumbling.
September 26th, 2009 at 12:29 pm
Wow, I can’t believe that Barry Ritholz wrote these words. Are we now living in a communist state where freedom of civilized speech is subject to imprisonment?
Remember Thomas Jefferson?
“Nothing gives one person so much advantage over another as to remain always cool and unruffled under all circumstances.”
Yes, Barry, you are capable of expressing your true feelings without leaving the chamber in cuffs.
“All tyranny needs to gain a foothold is for people of good conscience to … remain silent.”
Barry, time to roll up your sleeves and speak to Congress. We are counting on you.
September 26th, 2009 at 12:31 pm
Cursive:
OT (and not related to your Fed/Boxing analogy). Reminds me of the Michael Moorer/George Foreman fight. When Moorer hit the canvas, he rolled over and opened his eyes, when he noticed the ceiling cam looking down on him, he quickly closed his eyes again and played possum. Sometimes, the underdog wins by KO.
September 26th, 2009 at 12:33 pm
BR,
this: Federal Reserve Act December 23, 1913
http://www.historycentral.com/documents/Federalreserve.html
may help your argument that the Congress is, in fact, worse..
though, this: ”
“Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation’s debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over.
“This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it.
“Some people who think that the Federal Reserve Banks United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lender. In that dark crew of financial pirates there are those who would cut a man’s throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain International propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime…”
–Rep. Louis T. McFadden of Pennsylvania
http://www.federal-reserve.net/
might remind us, again, which, of the two, plumb lower depths..
http://clusty.com/search?input-form=clusty-simple&v%3Asources=webplus&query=Federal+Reserve+Act+of+1913+Fraud
also, it may help to point out that C. Whalen feels it worth his Time to testify to Congress, and, last I checked, he’s, yet, to imprisoned for his efforts..
September 26th, 2009 at 12:37 pm
Barry:
I showed my SO your comments. She’s a pretty smart cookie (and pretty, too). She suggested that your opening comments address your fears of the consequences of telling the truth in front of that body. A little preemptive defense.
September 26th, 2009 at 12:41 pm
btw, where’s CNBC Sucks when you need him? (I can hear it now, ” Ritholtz couldn’t appear before Congress, he was worried he wouldn’t be fashion forward.”)
September 26th, 2009 at 12:42 pm
Barry, if you change your mind, remember you were invited by the House, so don’t address anyone as Senator…
September 26th, 2009 at 12:44 pm
markd:
Funny!
September 26th, 2009 at 12:53 pm
barry..
i dont agree with the emotional nationlisms/idealism of most poster here.
i would have done the same as you are doing…
this society is made up of 70% idiots….its very hard for one man to bring a change. and even if i ever think of working on something for the greater good of the soceity it will be only when i dont have to pay a price of my own personal life..(going in front of the congress and telling the truth is not helpful to the future well being of my family).
if anyone really wants to bring a change in this country….it has to start from grounds up.
make people pay attention to real issues…………else no point in bitching about politicians who have the support of the majority.
how about we start by reaching a middle ground on the biggest non-issues…gay rights and ab0rt10n.
if we are not able to do that…..nothing is going to happen for the betterment of common good…it will be politics as usual.
September 26th, 2009 at 12:53 pm
Have you taken the time to even familiarize yourself with what constitutes “Contempt of Congress”?
Historically, it has been applied to someone who “willfully makes default, or who, having appeared, refuses to answer any question pertinent to the question under inquiry”. Or it is applied to someone who refuses to comply with a subpoena (as opposed to voluntary testimony)…or someone who tries to bribe a
congress person.
Going before congress and giving honest answers…that just happen to be unflattering for the Congress…does not seem to be actionable.
Hell…Rafael Palmiero, shaking his finger at Congress, while lying about his steroid use, wasn’t even charged with contempt. [Also, David Stern when compelled to testify for the NBA on steroids didn't back down one bit from the congressional panel...and he sure wasn't charged with anything.]
This is a voluntary testimony… and if you should give Congress your honest opinion that it is a part of the problem…it’s just not grounds for contempt.
~~~
BR: It was said tongue-in-cheek . . .
September 26th, 2009 at 12:56 pm
btw..
its a waste of time to tell the truth to congress…you made enemies and they dont care beginning next day. unless barry is interested in starting a political career…its a waste of effort.
September 26th, 2009 at 1:01 pm
you know we can complain about todays congress, but its no worse than in has been in the last 9 years, and its actually no worse than it was in the 1800s and 1900s. its been more of a matter of luck that any politician (local, state or Federal) that actually does some thing for the betterment of the citizens. it almost always been for the betterment of an industry (or a business in it).
September 26th, 2009 at 1:03 pm
BR,
You are one of the voices in the wilderness, one of the few who actually understands what happened, and more importantly, why. Presumably, because of your knowledge, you are also one of the few who can make recommendations regarding what is needed to fix this mess.
The next question is: who chose you and what questions are they going to ask? The corruption in congress is not limited to either Democrats or Republicans.
The third consideration is that someone needs to speak the truth and see that it gets put into the congressional record. It is wishful thinking to believe that under the current corrupt system that those who benefit the most will allow their gravy train to be taken away voluntarily. This pertains to the congress, the powerful financial interests, the corporations, not to mention the bloodsucking lobbyists. The losers in this are the rest of us who are the victims of those I just mentioned, and we will never get to testify.
It took 30 years of deregulation, tax cuts, corruption, and greed to get to this place, it might well take the collapse of our economic system to fix this mess permanently, as the rich and the powerful will never give up trying to become more rich and more powerful.
Despite the seeming futility, I believe you have a duty to testify so that at least the record is set straight. There are many who have breathed a sigh of relief that a truth teller has decided to stay home and post to his blog rather than to testify.
September 26th, 2009 at 1:04 pm
@cursve…….non sequitur or you have read a different history book.
September 26th, 2009 at 1:08 pm
Barry:
I registered just to say this: Not only should you go, you need to go. Ignore the cynicism, take the opportunity, and place some common sense on this matter in the congressional record.
September 26th, 2009 at 1:13 pm
It is a sad day when one must fear (and rightly so) retribution of their government when being candid and honest. Can anyone not conclude that the values that guide our society are in the throes of decline?
September 26th, 2009 at 1:14 pm
Doesn’t testifying before Congress have legal aspects? Isn’t it a bit like testifying in court? Isn’t the one who testifies surrounded by lawyers, many of whom are very clever and well-versed in the arts of distortion and obfuscation? It’s hardly a walk in the park during which the witness can settle back into some comfortable rant or gently needle his interrogators with uncomfortable truths.
September 26th, 2009 at 1:19 pm
With you on this one. Your testimony would probably be used as proof they “listened to opposing viewpoints” as they go headlong off the cliff for their masters. They already know the truth.
September 26th, 2009 at 1:23 pm
@dougc
During the Reign of Terror, at the height of the French Revolution, Marie Antoinette’s husband was deposed and the royal family was imprisoned. Marie Antoinette was tried, convicted of treason and executed by guillotine on 16 October 1793, nine months after her husband.
Doug, be careful when you assume the naiveté of the masses. Regime change can and will happen from time to time. Also, don’t go poking a possum in the ribs. They like to play dead as a rule, but, when disturbed, are fierce.
September 26th, 2009 at 1:23 pm
Suddenly, I smell the reek of a coward in here.
“I know that lady is being beaten by a thug, son, but it’s none of our business, and we have nothing to gain and everything to lose by calling attention to it. Pretend you don’t see it. I’d do the same if it were you. Plus, we do our bit for our culture and society by recycling”
September 26th, 2009 at 1:27 pm
GerhardWMagnus Says:
Doesn’t testifying before Congress have legal aspects? Isn’t it a bit like testifying in court?
___________
When testifying in court, there’s a huge difference between being the defendant and being a witness.
September 26th, 2009 at 1:31 pm
I feel strongly about it both ways….
But…
…The constant petty behests of life permit few opportunities for major satisfactions, and when one is offered it should be seized.
Nero Wolfe (Rex Stout)
Did you work as hard as you did to get here to let an opportunity slip away?
I got seriously crossways with my union over a two year period over what I viewed as mismanagement of the pension and 401a with greater repercussions than time in the slammer. But then, I’ve looked over the edge before.
It’s your decision. What kind of regrets bother you more?
That said, Keep on Keepin’ on.
September 26th, 2009 at 1:31 pm
MA @ 13:23
maybe that ‘tude could use a soundtrack?
http://www.lyricsmode.com/lyrics/b/bruce_hornsby/the_way_it_is.html
September 26th, 2009 at 1:33 pm
withere Says:
“With you on this one. Your testimony would probably be used as proof they “listened to opposing viewpoints” as they go headlong off the cliff for their masters.”
Reply: They’ll take us off the cliff with them.
“They already know the truth.”
Reply: As is evident by . . .?
September 26th, 2009 at 1:34 pm
Only took 6 posts for the Hitler comparison to be trotted out..
September 26th, 2009 at 1:35 pm
MA,
to be clear, the ‘tude that you were referencing..
September 26th, 2009 at 1:35 pm
MEH:
Yup.
September 26th, 2009 at 1:36 pm
MEH:
Understood.
September 26th, 2009 at 1:37 pm
BR:
Long time lurker here. I don’t trade and I don’t manage OPM, but I read and learn every day from this site. Like MikeinSF, I registered today just to ask you to testify. I recognize the realities and influences and possible futility of the effort, but as many have said most people never get this chance. My letters to Congress are just lost in the chorus (and money) of lobbyists. Step up and speak truth.
September 26th, 2009 at 1:39 pm
Congress will always be corrupt. That’s the nature of politics. You can have an influence on the source of future corruption. The Fed allows the congress to run up massive debts on the backs of taxpayers and pass out that debt money to their favored constituents. Without a Fed the sources of corruption are more fragmented and harder to create. The congress can’t run up a massive debt with newly manufactured credit to pass out to favored constituents without a Fed. The congress becomes evil, but the source of evil lies in men who can take wealth by an inflation tax in the name of an undefinable greater good without recourse to the people who created the wealth.
Man up and help fix the source of the corruption.
September 26th, 2009 at 1:41 pm
david Says:
Only took 6 posts for the Hitler comparison to be trotted out.
__________
but not trotted out inappropriately.
September 26th, 2009 at 1:49 pm
Come on Gary we’re only asking you this one time to do something for us. Do it.
Please Please Please……use Fucking Fucks in a proper context with a strait face during your testimony.
September 26th, 2009 at 1:51 pm
Oh man, we could see you on YouTube saying “DON’T TASE ME, BRO!” as you are dragged out.
September 26th, 2009 at 1:57 pm
Barry,
I would not have politely demurred. I understand your reason…even your sarcasm. I agree with your distaste for a government body which has made so many poor financial decisions for all classes of society in this country. I question whether I would want to testify under those circumstances as well…
However given the depth of your understanding of the matter, your high profile in popular media and the fact you lead a relatively small but very significant number of deep thinkers about “How we got into this mess”, you might be the best person for the job.
At the end of the day it is still an opportunity to speak the truth. This famous quote by Edmund Burke (1729-1797) which is not correct actually… still does apply (I include the attributed quote and the original here for educational purposes… and both versions apply very well!)
Popular modified over time well known version:
“The only thing necessary for the triumph of evil is for good men to do nothing.”
The actual language used by Edmund Burke:
‘When bad men combine, the good must associate; else they will fall one by one, an unpitied sacrifice in a contemptible struggle.’
-
September 26th, 2009 at 2:00 pm
That’s because controlling Congress is a two-stage process: First, you must buy the politicians. Second, the public must tolerate or ignore the latter.
————–
So I guess the solution is to do whatever you need to do to become a multi billionaire ASAP so you can force your vision (ideals) onto everyone else. lol
September 26th, 2009 at 2:00 pm
If anyone can give me a good reason to spend a day in DC testifying to Congress, I am all ears.
Well, I can’t really tell you any good reasons to testify, but in case you are trying to “Not Be Seen” by Congress I can give you this advice: Don’t stand up.
September 26th, 2009 at 2:03 pm
Hello,
I have been reading your blog for about a year now. Let me say : great stuff and thanks. I recently finished “Bailout Nation” and I think it is a very important book that a lot of people should read, the best I’ve read about this crisis for sure. So, thanks also for that.
It is the first time I post a comment because, after reading your post, I’d like to ask you : You point out to so many problems, how do you expect things to actually change if you don’t go to Congress ? What is your plan for change if you have so little faith in them and refust to talk to them ?
You seem to like Volcker a lot, he goes to Congress. Why don’t you testify “like” him ?
BW
September 26th, 2009 at 2:04 pm
Forced to agree with most of your serious, longtime posters here, Barry. For you personally, it’s put up or shut-up time.
Remember Colin Powell? I always had the feeling that he turned his back on destiny by choosing not to run for the GOP nomination in 2000. Had he done so, he might well have been the first AA prez and spared us the grief that was GWB, but we’ll never know, will we? Instead, his legacy will be that ridiculous presentation to the UN about Iraq’s stockpile of nuclear weapons…
Not a good comparison to your situation, I know, but the point is you don’t turn your back on history when it comes a callin’.
September 26th, 2009 at 2:05 pm
Here’s the reason BR- I believe that by passing up the chance to effect change, you lose your moral authority to continue your criticism. For instance, if Daniel Snyder would let me have the Redskins for a year and I turned him down, I would lose my moral authority to call him Satan’s right hand man and other such names.
Besides, I know some of the best white collar defense guys in DC and will be happy to find you one!
September 26th, 2009 at 2:06 pm
“Iraq’s stockpile of nuclear weapons…”
make that WMD – got a little carried away there…
September 26th, 2009 at 2:08 pm
I have a different perspective. I think the real reason is that you know in your heart that you won’t have the balls to actually say those things. Once you are in that room in front of all those congressmen, spectators and cspan cameras, you will not be able to say what you really feel and then will feel disgusted with yourself and will have to face all of us. It’s hard to do. I don’t think I could do it. It has got to be hard it is to get up in front of people and basically accuse them of being criminals. Prove me wrong, please.
September 26th, 2009 at 2:09 pm
I must be naive or something because I can’t rationalize your fear.
If you go to jail for this it’s because some kind of fascism takes over. If they want to lock you up, they already have what they need to shut you up. The first thing extremists do is get rid of the pesky intelligentsia. You’ve already published a book for crying out loud! They already have everything they need.
September 26th, 2009 at 2:09 pm
drey Says:
“Iraq’s stockpile of nuclear weapons…”
make that WMD – got a little carried away there…
_______
As they had neither, I don’t think it was you who got carried away.
September 26th, 2009 at 2:20 pm
“You can see why going to DC is probably a good way to get my ass thrown in jail”
Your instincts are correct there BR when you summed it up with that sentence.
Keep your yap zipped when it comes to anything requiring a paid stenographer…
http://www.demotivateus.com/opinions-keep-them-to-yourself-demotivational-poster/
September 26th, 2009 at 2:20 pm
Thank God Ron Paul and Tom Woods is not affraid of Handcuffs!
September 26th, 2009 at 2:22 pm
Based on your very thorough and honest analysis presented in “Bailout Nation” I was hoping you would have the opportunity to testify before Congress. I would assume you are concerned about your legal risks of making confrontational comments to individuals of this Committee. I hope you will reconsider and testify.
Some suggestions:
Suggest that all members of the Committee obtain a copy of your book “Bailout Nation” and have them or their staff read it beforehand, or just give them each a copy if you want.
Identify high risk (legally) opinionated responses you may wish to express and consult with an attorney if necessary and practical regarding same. Separate statements of fact from opinion.
If the risk of being held in “contempt” is high in your opinion or your attorney’s opinion, revise your answers accordingly, i.e., rather than confronting Congress persons individually, make comments in general about lawmakers and lobbyists.
If you so desire, ask for permission and/or an invitation to testify before the Committee responsible for formulating lobbyist legislation, if you feel you have constructive suggestions regarding such legislation.
And yes, your input may not make that much difference in the solutions the Committee compiles into legislation. However, you have grabbed their attention and they obviously have some respect for you, otherwise you would not have been invited to testify. Consider it an honor and be grateful.
Just remember, they do not have your expertise and they are asking for your assistance.
Based on your commentary on the “The Big Picture” over the past many years, I know you become emotionally involved in a lot of issues you discuss. However, YOU ARE a professional and can do this in a professional manner.
Please go. You will do a great job, and I am sure you will stay out of jail.
September 26th, 2009 at 2:28 pm
“If anyone can give me a good reason to spend a day in DC testifying to Congress, I am all ears.”
To plug your book.
September 26th, 2009 at 2:31 pm
I think it is your responsibility as a citizen to go and testify. Here, in America, you people take a lot of things for granted. In the majority of other countries on this planet the governments do not directly solicit public input. Another example, here people want to count on an impartial jury of peers, if they end up in court, however, when it is their turn to serve they try to weasel out of it.
I don’t think you will be held in contempt if you express you opinions politely. For example, you can say that “you are worried about the current and future influence of the banking industry on the Congress through campaign contributions; and, for that reason, you recommend to keep the Fed independent of the other branches of the government similar to the Supreme Court”… etc.
And if you really want to stick it to them there are millions of polite ways to say that somebody’s mother is a wh*re. You know what i mean.
September 26th, 2009 at 2:33 pm
After reading all responses, I must agree with the many responders who are encouraging you to testify. (My initial first reaction was the same as yours.)
You have established yourself as a knowledgeable, honest and credible expert. Thus you may have a responsibility to yourself, your readers and at the risk of sounding too pious – your country – to share with Congress your insights with respect to the causes and your recommendations for solutions.
Remember, there is never a wrong time to make the right decision.
Please call them back and agree to testify.
September 26th, 2009 at 2:33 pm
nertopia,
thank you for sussing this: “The actual language used by Edmund Burke:
‘When bad men combine, the good must associate; else they will fall one by one, an unpitied sacrifice in a contemptible struggle.’
http://www.thefreedictionary.com/sussing
To me, Burke, accurately, delineates the true Nature of the scene We are witneessing.
http://www.thefreedictionary.com/Nature #7
http://www.thefreedictionary.com/witness #1
September 26th, 2009 at 2:39 pm
Choosing between Congress and the Fed is like choosing between Pol Pot and Hitler. Lose-lose any way you look at it.
September 26th, 2009 at 2:40 pm
Go and push for transparency. As long as we KNOW what’s happening, we can deal with it. It’s being in the dark for months and years that gets ordinary Americans in taxpayer trouble.
September 26th, 2009 at 2:46 pm
Other thoughts.
First, if some Congressmen wanted you in handcuffs, they could already use the material from this blog and from your book
More seriously, imagine you in handcuffs (or in some serious trouble) after your testimony.
Think about what happens NEXT !
I mean, a guy speaking the truth to Congress who gets into trouble for doing it !
With all the support you have (including in the media), this will create a wave of reactions, a real shock in the country.
EVEN IF you end up in trouble (but I don’t think you will), you have to do it.
September 26th, 2009 at 2:46 pm
Barry, I think the notion that you are going to be educating these Congressmen is just wrong. What Congress wants is more money and power. They want to blame the Fed. for the recent economic troubles(nothing is ever their fault), and you would just be a pawn in their game. IOW, they want you to say what they want to hear.
As for contempt of Congress charges, that hit a nerve. My brother, let’s call him Stan, is an attorney who was subpoenaed for his class action cases with asbetosis and silicosis. The Republican Congress was putting the beat down on these attorneys, and a lot of it IMO was deserved.
So he hires an expensive DC attorney, and he testifies. During the hearing, Joe Barton, one of the biggest scumbags in Congress, tells my brother, “You didn’t comply with giving us necessary documents.” My brother says, “There are over one million pages of documents. Which ones do you want?”. To which, Joe Barton states, “Stan, you know which ones we want!!”
My brother is scared out of his wits and gets terribly depressed. A powerful member of Congress has a bullseye on his back, and to add insult to injury, he comes home to read in the state’s bar journal, “Stan Z, who was not convicted of contempt of Congress…”My brother felt this was clearly the work of a Barton ally.
Now you may think that Barton had it in for my brother because of the class action suits, but that was not it. Barton went after him because he hated the DC attorney my brother hired. He went after everyone who hired this particular DC attorney.
The funniest part of this story to me was my brother was outside of Congress talking to his lawyer and there was this parade of expensive items being brought into the building. My brother asked his attorney, “Are these gifts from lobbyists?” His attorney said, “Probably”. Then a person climbed the Congressional stairs with a huge stack of expensive bed sheets. Before my brother could say anything, his lawyer told him, “You don’t want to know.”
My brother’s attorney told him that if the Dems won in 2006 all the attacks against him would stop and sure enough they did.
During the hearings on oil prices and limiting speculation, I listened to all the Senate testimony. I’ll never forget when Lieberman told Michael Masters that his staff would getting in touch with him. This to my mind was the most important event. Masters was being asked to give his input concerning the upcoming bill. Helping to write the bill is doing something of substance not image. In addition, Masters and the other people testifying before Congress IMO were truly educating them on how oil prices were set and what to do with regards to higher prices. Congress really needed their help as of what to do.
I don’t think that is the case here. The whole purpose of the fed’s being was to create a body that was resistant to political pressure. The worst change from the Volker to Greenspan era was how political the fed became, and you are being asked to make it even more political. If you were really being asked to do something of value like helping to write a bill, I think you would be foolish not to participate. OTOH, in this case you are just being asked to be a pooch in the world’s biggest dog and pony show.
From a selfish point of view, though, Barry I do want you to go. I want to read your up close and personal your take on how fucked up Congress really is. It sure would be an experience you would never forget.
September 26th, 2009 at 2:47 pm
If it is truly fear motivating you to demur, then you should absolutely go. If you have something to add, then you should absolutely go. If you fear a bill of attainder, change your name to ARNOLD IGNATIUS GUMP.
This is about public service, and it is the highest calling. If you change one mind, it is worth it.
P.S. I’d suggest/argue your blog is a sincere form of public service also, but I like to see some truth dealt in congress on occasion, even though I am not a fan of head beating/futility.
Do it for your legacy.
September 26th, 2009 at 2:48 pm
BR,
Your concerns are valid, but how hard is it to consult a lawyer to find out how far you can go before being in trouble. I too think that you are given a unique opportunity to highlight the cancer that is eating up our democracies. You should not waste it.
If it is a money issue re. a lawyer, contact me, you have my email.
W
September 26th, 2009 at 3:06 pm
BR: You raise a valid point —
but its not the manners — its the handcuffs I am concerned with!
reply:
————-
They don’t do that anymore. Besides, they’ll probably wand you for metal before letting you in. Be the first ever to be honest with Congress. Maybe you’ll be remembered like that ‘Have You No Shame” guy at the Army-McCarthy hearings. If nothing else, you might be asked to visit HongKong and speak at important meetings.
September 26th, 2009 at 3:08 pm
I would pay to see you testify , and then jump up and start chanting ATTICA ATTICA ATTICA!
September 26th, 2009 at 3:12 pm
Only if Alan Grayson is one of the Congressman you are testifying in front of.
http://www.youtube.com/watch?v=mXmNpdYpfnk&feature=channel
September 26th, 2009 at 3:14 pm
It would give many of us so much relief. I feel like you are being hyperbolic when you protest you will be arrested. I implore you. Please go testify.
September 26th, 2009 at 3:15 pm
I scanned most of the bloggers responses and it sounds like the wave is that you missed an opportunity here, Barry. I guess, thinking over all the factors relating to handcuffs and responsibilities, I’m going to have to join the majority ranks. I don’t believe testifying before Congres, utilizing your experience and standing, should be thought of as a risk, but a responsibility and an opportunity missed when that freedom is available. It may be corny-sounding, but speaking out has been a privilege that has been earned in this country and should not be taken lightly. Using Hitler as a comparison may be a little heavy-handed, but the illustration of what can happen with everyone remaining silent is still a lesson from history. I think anyone like you who has worked to gain the notoriety of voicing sometimes contrary opinions has the responsibility to take it to that level, even if it is to a bunch of lobbyist whores.
September 26th, 2009 at 3:19 pm
Telling Congress what you rally think of them and the system MAY not do any good.
But, if it gets other people to talking – if it gives others the courage to speak out against the corrupt way our elected official operate – then it can do a world of good.
Why not try? You could be a candidate for a ‘profile in courage.’
If it’s not too late, go for it. tell it like it is.
September 26th, 2009 at 3:20 pm
What an extraordinary and adventurous life you are enjoying, Barry.
If i had the opportunity i’d surely go and tell them what i think.
i don’ t think there’s a downside risk here, so, if you can make time in your schedule, you won’t be hurting yourself any, and just may do some real good for your country, your world (of finance) and your life.
Go down there loaded for bear, pass out copies of your book to the Representatives or Senators in the finance commities, speak your piece, tell them to call you again if they need your help, wish them all the best and graciously take your leave.
“Noonan, you can do it!”
September 26th, 2009 at 3:22 pm
Testify, or Kudlow wins. He’s laughing at you. So is the rest of the octobox.
September 26th, 2009 at 3:22 pm
You obviously want to testify, otherwise you would not have toyed with the crowd in this way.
Just do it.
September 26th, 2009 at 3:23 pm
Barry, I am sure some posters echo what i will say…i didn’t have the time to read the comments.
Please do not let us down. Go testify. You are a lone voice of THE PEOPLE. You come across as the “everyman” yet are smart and intelligent and i think that you could do a great job. It’s easy to say you won;t make a difference, but that type of complacency is the problem….i believe the anger boiling up in america needs a smart intellectual voice and you are the man…
September 26th, 2009 at 3:26 pm
An honest man speaks the truth, though it may give offence; a vain man, in order that it may.
William Hazlitt
BR, you are an honest man. Go testify.
September 26th, 2009 at 3:29 pm
“But I do feel that it would be a) a colossal waste of time and 2) accomplish nothing.”
i’m with you here barry. and i suspect a large percentage of the guilt-tripping, “it’s your civic duty” folks here would come to the same conclusion if they were in your shoes. but you did miss a great chance to hawk your book.
September 26th, 2009 at 3:37 pm
barry, no advice here but experience.
i won’t contribute to failed systems but i fear abandoning heritage to scum.
so each time i pretend it matters and act it as if it did.
sometimes a bit of meaning is preserved. cheers.
September 26th, 2009 at 3:40 pm
BR-
if you find yourself in the unenviable position of DEFENDING the Fed- as you indicate in your opening comments-
then don’t go
September 26th, 2009 at 3:41 pm
As to it your comment above (the 100 comment one) once a year I drive 9 miles before or after work stand in line any where from 10 minutes to an hour and for what? to click my ballot into the machine. talk about giant useless time sucks
September 26th, 2009 at 3:50 pm
do it for the “rationals”
do it for your peeps
do it for yourself
September 26th, 2009 at 4:02 pm
I would HAPPILY PAY YOUR BAIL …..or ANYONE”S BAIL…..if they had the sand to actually tell the Congress Critters THE TRUTH.
“The Honorable Senator from AIG….”
LOLOL
That would be fucking priceless.
September 26th, 2009 at 4:04 pm
Do it for the chillun…
September 26th, 2009 at 4:20 pm
There’s no reason to defend the Fed. The problem, BR, is that you’re thinking too narrowly. The question should not revolve around whether it is better for the Fed or Congress to control monetary policy. Rather, the question should be: why shouldn’t the people directly control monetary policy?
End the Fed. End legal tender laws. Let the market participants decide monetary policy. I, for one, am growing tired of this nation’s constantly expanding central economic planning.
September 26th, 2009 at 4:31 pm
BR said, “I didn’t see how speaking to Congress would matter one tiny bit.” Wow, a money manager who can see into the future! Where do I sign up?
BR also said, “Besides, they seem to be beholden to those whose interests are to not fix the problems at hand.” To the comment by Franklin411 above, I would just add Churchill’s famous remark that democracy is the worst form of government except for all the others that have been tried.
My view is that we have barely begun a process that will take years. You shouldn’t pass up an opportunity to add your voice early, and you should be prepared to go back again.
If you need some inspiration, check out this weekend’s edition of “This American Life” on NPR. You will hear a former U. S. Marine who served in Iraq comment on which was worse, dealing with America’s financial system or armed combat.
September 26th, 2009 at 4:38 pm
Don’t go and waste your time with that dog and pony show!
September 26th, 2009 at 5:31 pm
Quite bluntly, I didn’t see how speaking to Congress would matter one tiny bit.
You cowardly curr. How dare you put up this blog and then ‘demurr’ when it is your time to stand and be counted. Whether you are for or against the Federal Reserve and all it stands for, you have no business voicing your opinion here without the conviction of your words where it counts. You were given the chance to put forward your ideals and you…you stood down?
You are a coward sir. Huddling in the bush and faking some contenance of ideals you do not truly believe in. I spit on you and this blog. I have writ my piece and have no more to do with you or your useless words from here on in. You are not worth the parchment or script or electrons spent you used and wrote upon. You are a ghost without anything to back your emptyness. You are but piss into the wind.
I hope the whoosh on the Hamptons finds you as loathsome and wanting as I do. You are not worth the wind or current to push you to a worthy shoal when the doldrums wander in. In fact, you are the doldrum itself. Unwanted, unwilled, and much ado about nothing in this world.
You stand for nothing but empty words. Piss and excrement be upon you!
September 26th, 2009 at 5:41 pm
@BR
I was doing so due diligence reading on Rep. Alan Grayson this afternoon and found this Vanity Fair article very interesting:
http://www.vanityfair.com/politics/features/2007/11/halliburton200711?currentPage=3
I’m still not sure what to make of Mr. Grayson, but I believe this quote fits your self-styled “dilemma” very well:
“It’s possible that when all is said and done on these cases I will have lost a substantial amount of money. I’m O.K. with that. Some things you do because they’re really worthwhile and important.”
September 26th, 2009 at 5:49 pm
Nothing like some jail time to boost book sales…
September 26th, 2009 at 5:50 pm
Not acting makes you the Evil of Two Lessers. You know by presenting the issue that you are confronting a moral challenge. I suggest to you that you will surely live to regret not catching this pass for the big team and standing up for the U.S. Constitution that clearly give the right to coin money, etc., abrogated since December 1913, solely to the Congress and no such Central Bank that Jefferson, Madison, Jackson , and Kennedy were well aware of and their insidious influence on the lifeblood of our free enterprise system.
Do it for the children and take your place in the history of our republic.
September 26th, 2009 at 5:51 pm
There once was a fine French poet named Charles Peguy, who died in defense of his country (poets make poor soldiers although some soldiers can make fine poets). An acquired taste to be sure. At any rate among the many quotes attributed to him, this one is particularly compelling:
“He who does not bellow the truth when he knows the truth makes himself the accomplice of liars and forgers. ”
I suspect we would prefer it did not apply to all of us.
“Dire la vérité, toute la vérité, rien que la vérité, dire betemente la verité bete, ennuyeusement la vérité ennuyuese, tristemente la vérité triste: voilá ce que nous nous somme proposé. Nous y avons a peu pres reússi.”
September 26th, 2009 at 5:52 pm
I thought America was the ‘Land of the Free, and the Home of the BRAVE’.
Unfortunately, your opting out (and reasons for doing so) is providing evidence that neither is true.
Your country needs a Mr. Smith…
waste of time or not.
September 26th, 2009 at 6:48 pm
“It is not the critic who counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself for a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat.”
Theodore Roosevelt, “Citizenship in a Republic,”
Speech at the Sorbonne, Paris, April 23, 1910
BR, Get into the arena!
September 26th, 2009 at 7:07 pm
I agree with RW—formally request they read Bailout Nation into the official congressional record as your testimony, then unequivocally state, “I have no further comment” .
I do have a problem with Congress in that the talk becomes namby-pamby nice and not getting to the meat of the matter. 5 minute time limits drive me crazy when you have people in power positions obfuscate for 4 1/2 minutes and say, at times, something that has meaning.
I understand your frustration, but keep on plugging for all of us please!
September 26th, 2009 at 7:18 pm
IMHO, like most I ask you too reconsider.
It is important that they understand how many of us out here understand what is going on, the reason why Bailout Nation was writen was for hisotry’s sake in the hopes others would understand from someone in the business and on the sidelines of the series of mistakes.
What is important was that not that you wrote the book but that millions understood it and saw it happening while it was happening and cried out in horror yet we were not heard.
The law comes down hard on someone who physically harms another because there is a clear line all agree on. When it comes too white collar stuff so few understand and thus it is immensely easier to hide with a great lawyer. Someone needs to point out where the lines should be and why. Thirty-Forty too one leverage is unequivocably INSANE, and doing it a second time will not turn out better.
September 26th, 2009 at 7:21 pm
My vote is for you to testify. Although I agree with many others that you should do it for the greater good, this is purely a selfish reason for you to do it: I suspect you will live to regret it if you don’t, and regret is a terrible companion. I know if I were in your shoes, it would bother me if I didn’t act.
September 26th, 2009 at 7:42 pm
Do it. Just remember that you have to explain it to them in layman terms. If any doubt what you have to say then you can bring up the corporate sponsors.
September 26th, 2009 at 7:45 pm
Christopher@4:04 -
“Do it for the chillun…”
I think you’ve got it
Help stop kickin’ the can down the road
September 26th, 2009 at 8:19 pm
@dead hobo
“But not you. It would be rude to actually confront the problem when given an invitation to do so. You blew it, chicken. You have credibility and prefer to sell it rather than use it. Everyone else does, so you’re not alone, but I think it is disingenuous to complain about the problem on a daily basis but not do anything about it when handed the opportunity to make a difference.”
You hit the nail on the head. Barry – sorry you are a chicken.
September 26th, 2009 at 8:29 pm
Too Bad. You could have at least shown up, passed out free copies of your book and told them that if they were really interested in what you think, to read it. Your payback would have been an increase in Bailout Nation sales. Two birds with one stone…BR.
September 26th, 2009 at 8:29 pm
Barry
Looks like your fan base here will be extremely disappointed by your refusal……………I agree. I dont think it is overstating in the least that this current crisis has the potential to go down as THE seminal moment in US history.
What we do from here forward really matters. You are a voice of reason and intellect plus you care that our financial system SERVES the greater society. It clearly does not now but it should. Please reconsider if you can. We’ll bail you out if need be and we’ll march on Washington if you get punished for speaking the truth to our power.
Marcus Aurelius
Your infatuation with gold is misguided. If all fiat currencies implode (extremely unlikely) luxuries like gold will be the last thing people seek. A completely unstable and chaotic society is no place to be carrying around gold. Gold is not a necessity it is a shiny rock that societies who want for none of the necessities like to keep around. In a world where necessities are scarce no one will give a shit about gold.
September 26th, 2009 at 8:31 pm
A wise and pragmatic decision methinks. Also a complete waste of time, it’s all just political theatre really to “Show they are listening”.
But if what Congress has become is the future for America then I fear for the future of America. Democracy and corruption don’t make good bedfellows.
September 26th, 2009 at 8:38 pm
Barry,
I would join the chorus that suggests you testify, I caught your latest interview with Eric King about Flash trading and the contempt and outrage you displayed towards the perpetrators of this theft is what is missing in the public domain. Of course I wouldn’t suggest you use the same type of language but you can craft a statement that packs the same punch. I’m sure Nassim Taleb would have liked to unleash a raft of expletives but he managed to comport himself and still get his message across, I’m sure you could too.
September 26th, 2009 at 9:01 pm
Your prepared statements and your oral statements would become part of The Record. The Record belongs to the People and to posterity. That’s the only reason to do it, IMO.
Don’t do it if it doesn’t feel right to you. Nothing anybody says other than your wife and the handful of people closest to you should matter. If it doesn’t feel right to do it, that’s your answer.
September 26th, 2009 at 9:03 pm
Wes Schott Says:
June 18th, 2009 at 12:54 pm
BR,
send ‘em the book, a copy to all of the key WH staff
i finished it a couple of days ago
really stitches the whole story together nicely – and the last chapter is especially good – namin’ names
more power to the Fed? WTF?
September 26th, 2009 at 9:04 pm
TZ – you are a good man
September 26th, 2009 at 9:05 pm
I echo those who implore you to go to D.C. and give voice to the concerns of so many of us out here who won’t ever have a chance to do more than email our rep/senator or call their office or at most march in a mass of angry people.
Plenty here have pulled up apt quotes from wise and respected people that demonstrate that you should not shrug this duty. Don’t let it pass and don’t let the cynicism win. We’re all cynical about the people and the process, but if those best armed to help sway things don’t act, where are we then?
September 26th, 2009 at 9:22 pm
I think you should go. I work all day at a firm and go to law school at night. I make shit for pay (I’m an assistant to brokers) and I’m a slave to law school textbooks. I read your blog religiously and another reader (fellow student) and I are even looking to start our own blog through our schools corporate law department to engage in a deeper discussion of many of the legal issues you scratch the surface of.
Increasingly, my whole purpose in life is to become some sort of authority on corporate/securities law and move up the corporate ladder not to make bank (though a likely byproduct) but because I don’t want to see all the corruption, excesses and evils of our system repeat themselves.
True, a likely futile attempt. But I wouldn’t dismiss or turn down an opportunity to speak in front of Congress. Rather, I would kill for one. Even if it ended in my being escorted out in cuffs.
You ever watch Mr. Smith Goes to Washington? A movie, I know, but some people have those opportunities. Be that one crazy guy that stands up and says “This isn’t right.” Us twenty-five year old scrubs look up to you.
Out.
September 26th, 2009 at 9:58 pm
Barry-
Like several here, I have registered simply to urge you to do this.
Granted, I think it is cowardly for scores of anonymous strangers to ask you to jump into the pit with no safety net. But as someone on the left who has written congressmen over and over again to no avail, I envy your position, and would gladly get arrested to get your message out. (I’ve lost my job because of these people, and have little else to lose.)
As of now, the only voice that even remotely parallels what you are saying are the teabaggers, and because of that, any attempts to critique congress is thrown into that bucket of hate mongering. I’m not saying you should legitimize what they are saying, but there needs to be a coherent, left-of-center, independent group that can stand up to congress, which is *sorely* lacking right now.
I just hope that years from now, when you are talking to your grandkids about this crisis and they ask “What the hell were you guys thinking? Why didn’t you do something to stop this?” I hope you will look back on this moment and have a good answer for him/her. Regret is an emotion that I’ve never liked to deal with.
September 26th, 2009 at 10:42 pm
Dead Hobo:
It was Joseph Welch. I was thinking along the lines of him, or Howard Hughes. You remember his famous testimony, right? Sparing with Senator Owen Brewster?
September 26th, 2009 at 10:56 pm
Marcus Aurelius
Your infatuation with gold is misguided. If all fiat currencies implode (extremely unlikely) luxuries like gold will be the last thing people seek. A completely unstable and chaotic society is no place to be carrying around gold. Gold is not a necessity it is a shiny rock that societies who want for none of the necessities like to keep around. In a world where necessities are scarce no one will give a shit about gold.
______
I ain’t infatuated, bitch. Don’t go assuming you know my schtick just because you read a comment here. I’m not a gold bug, either. Every chaotic nation and or society on earth has people who have hidden gold as a store of value (because they know it’s valuable around the corner and around the world). In poor countries, they wear it around their necks. What will we pay our debt to foreign nations with when the jig is up? Dollars? Do you actually think we’re stupid enough to hand over our land and/or resources for the same paper (at par value — whatever that might be — no less) we foisted on the Japanese and the Chinese? Have you noticed the value of a dollar on the world market lately (or since we came off the gold standard)? You don’t consider that implosion? Let me ask you this: Why do nations and central banks hold gold? Why was gold confiscated (at gun point, in some cases), by the US government under FDR, if it had no value? Gold is what it is for reasons I’ve stated here before. If you can’t figure it out, or if you weren’t here to read it, too fuckin’ bad.
BYW: Your assertion that wealthy nations hoard gold “because it’s shiny and they like to keep it around” is the lamest, most idiotic statement in support of an argument I’ve ever read on TBP.
September 26th, 2009 at 10:59 pm
Last comment was to gbgasser
September 26th, 2009 at 11:22 pm
“…Don’t go assuming you know my schtick just because you read a comment here. I’m not a gold bug, either. Every chaotic nation and or society on earth has people who have hidden gold as a store of value (because they know it’s valuable around the corner and around the world). In poor countries, they wear it around their necks…”
“…If you can’t figure it out, or if you weren’t here to read it, too fuckin’ bad.”
MA,
in the excerpts, and in other places, It’s a lot like that.
IOW, “That’s the ol’ Pepper”
~~
Wes,
this/these: “more power to the Fed? WTF?”
Good Q: ’s, no? ~
September 26th, 2009 at 11:25 pm
Hi Barry,
I urge you to speak before Congress. If you can influence 10 Congressmen, than your spending the time would be it. In addition your testimony would be an one more milestone for opening the eyes of the American people to the transfer of wealth from the taxpayers to the few (i.e., AIG) inflicted upon us by the Banksters and their accomplices at the Fed.
Please remember Martin Niemoller’s words about what happens when we keep silent when we see a wrong:
“First they came for the communists, and I did not speak out—because I was not a communist; Then they came for the socialists, and I did not speak out—because I was not a socialist; Then they came for the trade unionists, and I did not speak out—because I was not a trade unionist; Then they came for the Jews, and I did not speak out—because I was not a Jew; Then they came for me—and there was no one left to speak out for me.”
Your speaking before congress will be both doing the right thing for the nation and personally – you’d get free publicity which just might bring in a few more investors with FusionIQ.
September 26th, 2009 at 11:32 pm
MEH,
It’s good to know you.
September 26th, 2009 at 11:35 pm
Barry,
I urge you to testify before Congress. If you can influence a few Congressmen, that itself would be worth your time. In addition it would be one more milestone in opening the eyes of the American people to the transfer of their wealth (i.e., the AIG bailouts) to the few due to the actions of the Banksters and their accomplices at the Fed.
Please remember the words of Martin Niemoller:
“First they came for the communists, and I did not speak out—because I was not a communist; Then they came for the socialists, and I did not speak out—because I was not a socialist; Then they came for the trade unionists, and I did not speak out—because I was not a trade unionist; Then they came for the Jews, and I did not speak out—because I was not a Jew; Then they came for me—and there was no one left to speak out for me.”
You have the opportunity to do the right thing and to get free publicity that can help you personally – who knows, maybe your going before Congress will cause a few more investors to invest with FusionIQ.
September 26th, 2009 at 11:47 pm
I’m with you, BR! Testifying before Congress is a huge hassle, everyone knows that.
They handcuff anyone who can’t spell. Book ‘im, Danno!
I implore you to stay home and watch “Curb your Enthusiasm” reruns instead. Can’t get enough of that self-centered misanthrope!
September 26th, 2009 at 11:52 pm
Barry
I started out agreeing with you. I even thought your fears were tongue in cheek but having read my way down the posts I think you should go. There were many excellent suggestions.
First admit your fears and point out that your not the only American who feels this way.
Take a lawyer and tell them you did so because you fear saying something which some members might find objectionable. They may ask why but that is what the lawyer is for.
Then tell them why without actually accusing anybody just report on the perceptions of your colleagues and readers encourage them to address those perceptions in a positive way.
Ans maybe you just might have a Joseph Welch moment and get to ask “Have you left no sense of decency?”
September 27th, 2009 at 12:13 am
My wife is a CPA and a Certified Fraud Examiner. She and I believe the Fed should be audited. Every other business is. It would not even slightly impinge on their independence. That they resist it so vehemently makes us both suspicious.
September 27th, 2009 at 12:20 am
Wow, popular thread.
In today’s America, you should just show up with a black board, write so stuff on it and link it all together.
Talk about nazis, marxists and dead grandmas and babies, weep a little, blame some foreigners and then weep a little more and say how much you love the flag.
That my friend will get to seat permanently on the other side.
Forget everything you know Barry,
It would just be so easy being an ignorant asshole paid to sit next to Michelle Bachman or some other demented D.Bag.
Think about it, soooo easy.
September 27th, 2009 at 12:23 am
Barry, you represent us. Go tell the truth to power if you dare — I live closer to DC, if you want, give them my name, and I will testify. I am more than willing; I have nothing to lose.
Your friend David
September 27th, 2009 at 12:43 am
[...] http://www.ritholtz.com/blog/2009/09/fed-vs-congress-lesser-of-two-evils/ [...]
September 27th, 2009 at 1:00 am
You should have been honored to be carried out in handcuffs before the US congress. There is no dishonor in contempt.
September 27th, 2009 at 1:05 am
I am actually surprised they invited you, perhaps they hoped in a small way that you might ferret out the lobby interests and you might be able to make change where congress is to cowardly to make that change that needs to occur. I guess we can always hope for the states to call a new meeting of the constitutional convention. That might rip our nation apart, but my guess is we would have better governance as a result.
September 27th, 2009 at 1:08 am
And lastly let me add, you gave up your Mr Smith moment. What a shame.
September 27th, 2009 at 1:15 am
“Barry, you represent us.”?
Aitrader has my vote.
September 27th, 2009 at 1:31 am
Someone on the Hill thought you might have worthwhile and important comments to make. Probably someone who has the same concerns many of us do, or is at least interested in getting as many views as possible.
By not going, you are more than likely denying those who are concerned about the current state of affairs, and therefore are denying those who are *in a position to do something about it*. It’s hard for me to believe you are that pessimistic. Hopefully you can reschedule for better time for you. It is absolutely worth going.
September 27th, 2009 at 1:36 am
Barry,
I thought that was pretty interesting that you decided to put your feelings out that way. And perhaps even more interesting to read the comments.
Speaking respectfully to the congressman/women is not about them. An act of respect is always about yourself. I have a hard time believing you would act otherwise. You teach only through your actions.
Btw, caught your interview on Financial Sense and truly enjoyed it!
September 27th, 2009 at 2:23 am
Since you, kind of, asked: I think there is great value in you accepting the invitation and hope you change your mind.
I could spew platitudes of “It’s your duty” or “All that is necessary for evil to succeed is for good men to do nothing”, etc…
I could say that this reminds me of the scene I saw from a TV show (I think The West Wing — where one of the secretaries is trying to get her boss to get her out of Jury Duty and after a bit of pestering he finally ends up telling her something like “Do it or don’t do it, its up to you. But if you don’t do it you don’t get to complain any more.”) or real life examples.
But based upon your updates to the story and your comments (The Daily Show being the best reason you’ve heard so far) I don’t think they’d do any good. I get the feeling that if there was a paycheck involved though…they’d have to hire armed guards to keep you out of the testimony.
Bah, what do I know? Certainly not enough that you should care about my thoughts or opinions.
Is this the part of the post where I get all worked up and in a fit of childish pique let you know that you’ve lost a good bit of credibility with me and that “I’m taking my ball and going home” (stop visiting your site, remove the rss feed subscriptions, stop recommending your site and book, etc…)? Naw, it’s not that part. Though I really do wish you would reconsider and accept the invitation. There have been some solid suggestions about tacks to take with the questioning, etc…
Good luck with your decision sir.
September 27th, 2009 at 2:58 am
Barry,
I think your decision not to go is a mistake. Please consider:
You’ve at least one ally on the Committee; Alan Grayson.
Also, you’re one of the few who saw this whole mess coming and took the time to write and blog about it with authority.
Finally, I think you shouldn’t hope for Congress to listen. But a lot of people will be listening. With the YouTube-ization of those testimonies, you could influence a lot of voters..you know what I am saying?
Said voters are pretty fed up with this whole shit. A clear and powerful performance could go a looong way. BTW, we can help, by propagating the whole enchilada over the Net…you know what I am saying? *evil grin*
September 27th, 2009 at 3:06 am
To Marcus Aurelius point about the importance of gold;
This post:
http://www.zerohedge.com/article/cia-chimes-gold-control-highlights-historical-gold-foreign-holdings-shortfunding
is a rather interesting read…to say the least.
September 27th, 2009 at 3:45 am
I have been following this blog site for one year and I have really enjoyed and appreciated your postings, links and writings.
I have also found the reader comments to be equally illuminating.
Having said that, I would simply like to say:
YES YOU SHOULD GO TO CONGRESS AND TELL THEM HOW YOU SEE IT!
Please.
September 27th, 2009 at 8:29 am
Barry: I would gladly spend time in jail for the opportunity to tell congress to go F@#k themselves while on national television. The legal costs may even be worth bankrupting myself. While I do not think it would be equivalent to the shot heard round the world or Nathan Hales comments before his execution it may light a fire in a manner similar to Rick Santelli (pardon me if I incorrectly spelled the last name) on CNBC. For the first time in my life, I am pessimistic on the long-term outlook for this country and believe that our standard of living may have peaked with our generation.
September 27th, 2009 at 9:23 am
wow, that’s alot of please re-think it……….maybe just go and tell them the truth, you run money for rich folks and all the rich folks want to invest in emergin markets not the us of a, and when that happens usually the middle class is right behind em……….and without investors well u know the rest
September 27th, 2009 at 9:36 am
for Marcus Aurelius:
Why do nations and central banks hold gold? Why was gold confiscated (at gun point, in some cases), by the US government under FDR, if it had no value? Gold is what it is for reasons I’ve stated here before. If you can’t figure it out, or if you weren’t here to read it, ……or maybe something else if you can stay the” rip your head off” attitude. Indeed Gold has an important function to which you happen to refer as a Government to Government B-O-P asset, and I have observed its handy use as personal collateral in situational lending or perhaps barter..often I have not cared whether the borrower reclaimed the paper or other item loaned to reclaim their coin , rare or otherwise bullion, but as a medium of exchange to conduct ordinary business in the public marketplace it is not at all a useful option, and when times get tougher may indeed be treated like a vital strategic asset to reclaim our National financial independence and be forciblly/eminent domain, etc. be rewarded with a decent 3 figure price which number could summarily rip the lungs out of highly-margined players who were correct about its importance but not necessarily everything rosy…something remains that we cannot know how it plays out if you will.
September 27th, 2009 at 9:37 am
I have only recently come across your web site, and I now look forward to your writings everyday. Although I am a newbie, it seems to me that you have written many pages about the Fed and Congress. If you were not to testify to HFS, then I’d lose a lot of respect for your character and word. In fact, I’d call you a coward. You have the ability, knowledge and opportunity to do something (testify) that your readers do not. Why not take that opportunity? I think you shun the invitation because you know you will not change everyone’s mindset to yours, Well, O.K., so what? How about simply influencing one person on the committee? If you believe Congress is influenced by lobbyists, then why not be the lobbyist for your readers?
Your comment about Colonel Jessup stating “You can’t handle the truth” is the wrong position on this matter. You should consider yourself as the lawyer asking, “Why the two orders? or “I want answers…. I think I am entitled to them!”
September 27th, 2009 at 9:54 am
So what if it is a waste of time? I mean, really, so what?
If you go, you might accomplish something.
If you don’t you will absolutely accomplish nothing.
September 27th, 2009 at 10:30 am
Go. And when you are asked stupid, pointless questions, show some serious disrespect, and ask them to ask you specific questions, the kind that Grayson of Florida didn’t ask. And ask them why they aren’t asking questions designed to get at the people in Goldman Sucks, JPMorgan, and all the other perps.
Ask them questions that make them squirm in their seats.
Think of it as a pleasure instead of an obligation. After all how many people on this planet ever have the opportunity to face their oppressors and make them turn blue?
September 27th, 2009 at 10:31 am
ToNYC Says:
for Marcus Aurelius:
“If you can’t figure it out, or if you weren’t here to read it, ……or maybe something else if you can stay the” rip your head off” attitude.”
___________
The attitude is not characteristic of my comments. I don’t appreciate being labeled as being “infatuated” _ especially when the term is followed by a weak argument.
Of course gold is insufficient in quantity to be the medium of exchange. Gold-backed currency would cure the blatant fraud that is fiat currency. my primary argument against fiat is that fiat currency is a “unit” of nothing. How can anything be measured when the unit of measurement can be redefined by a single party at their whim?
Gold is elemental, relatively fixed in quantity, relatively scarce, non-reactive, cannot be counterfeited or created from less valuable (more plentiful) substances, and is universally accepted as having value.
I’d say the same for peanuts or seashells if they fit the same criteria.
September 27th, 2009 at 10:40 am
I am another long time reader registering for the first time to chime in on this topic. You have a gift of being able to present information in a way everyone can understand. Congress can’t possibly know all the details without someone explaining these details. They need to be “experts” on all subject matter they legislate but it is obvious when listening to some congress people speaking on certain topics that they don’t really get it and are only regurgitating what they’ve been told by those trying to influence. They need help! Please ask them to re-schedule a time for you to come in and speak.
September 27th, 2009 at 11:29 am
I would like to see you testify. It would add additional worth to your book, someday would like to have it autographed. Like to see it on TV to capture too. I’ve never seen you loose it (even with Kudlow).
http://www.merriam-webster.com/dictionary/demure
Main Entry: demure
Function: adjective
Etymology: Middle English
Date: 14th century
1: reserved, modest
2: affectedly modest, reserved, or serious : coy
from thread top “this week” means Sep21-25 or Sep28-Oct2 ?
Demure isn’t really the word that describes “respectfully NO thanks”. Maybe you wanted more opinion before you affirmed ya or na.
I’ve read all the suggestions, hopes and warnings. If you have skeletons that that bunch (who must put up with themselves) would love to discredit you with than;
here is another line from “A Few Good Men” the movie by LtColGalloway “If you don’t think you can get it – don’t – you can get in a lot of trouble”
Maybe your scared of sollutions you may utter. You have been very good at seeing the problem, the sollution is very complicated (we all know that) (I hope). Maybe create a thread with sollutions; but you need those “thumbs up” “thumbs down” that youTube has for comments imbedded with that thread.
markd @ 3:41pm “ballot into the machine. talk about giant useless time sucks” .. LOL .. about it ….
and ouch airtrader
September 27th, 2009 at 12:26 pm
I think you made the right decision not to testify before Congress.
I doubt if Congress is going to do much to re-regulate the Financial sector.
They are having a hard time getting through Elizibeth Warren’s consumer protections, something which should be a no-brainer.
I’ve come to believe that we are going to have to address economic issues after the next election and at the state level. The Federal Government has cast it’s lot with the Fed doing everything “off balance sheet”. Few have the courage to take a hard stand.
The Dems and Obama have it all on the line with Health/Insurance reform. If they mandate 50 million people, most of them young and poor to buy into a corrupt and broken system and don’t give them a “public option” all hell will break loose and they will lose big in mid-terms. This statement is backed by polling numbers.
Alan Grayson has another great video from a couple days ago about auditing the Fed.
Check it out!
Again, thanks for what you do!
I get most of my news from the 20 or so blogs I read each day!
You do an amazing job of keeping your readings informed.
September 27th, 2009 at 12:59 pm
Barry,
What an interesting dilemna and snafu you find yourself in. Of those who have called you a coward for demurring to testify before congress, they have made absurd accusations, you have testified for truth and facts as you best can piece them together for years on this blog.
I get your tongue and cheek about the handcuffs, and am reminded Martin Armstrong has been behind bars for nearly a decade for a different set of trumped up circumstances, and he is being held without charges. Granted, that handcuffs are a low probability event, that that could not happen in America today is neither far-fetched or so tongue and cheek as we might like to believe.
So, I think as others have noted in the comments that you would at best be a political football, taking center stage of the circus that is Wash politics. No, you would be entertainment meat at best. If you were asked to work on a bill or regulation reform committee, that would be another matter, as one commenter pointed out.
In closing, I would like to return to the tongue and cheek handcuff idea. If you choose to play on the main stage and not on the margins, the easier it is to make you part of the circus itself. The risks are high and unpredictable. I spent a good part of this morning reading Naomi Klein’s “Shock Doctrine,” pertaining to Milton Friedman’s coup d’etats, political torture and economic shock doctrines that shook South America in the 1970s and 1980s so badly. Anyone who stood in the way of the junta’s authoritarian rule or oppposed Friedman’s so-called “free-market” ideology risked arrest in a Ford Falcon (known as a death mobile and symbol of terror), physical torture, and made to disappear. Any impulse toward collective action against the junta’s dictatorial ideologies was dealt with harshly. The junta sought them out and cleansed the country of the “apestosos, the dirty or diseased ones.” The junta knows where they were hiding, and they sent the Ford Falcon out to retrieve the dirty diseased ones.
We are undergoing the beginning of a new economic shock doctrine in the US, the transfer of wealth and the economic revolution is in its very early stages, no one can say how the economic shock-waves plays out politically here in the US as this unfolds over the next decade.
Those South American “Nunca Mas” truth commisions only came into being in hindsight, years after the initial coups, torture, and repression.
Donald Rumsfeld said in May 2002, Milton Friedman is the embodiment of the truth that “ideas have consequences.” So it is with Friedman’s concept of de-regulation today in the US, and with so-called financial-engineering, securitization of toxic crap, and decomposing risks of toxic crap with CDS weapons of mass destruction, who goddam knows how this plays out. These Friedmanite ideas and others imposed upon us like Too Big Too Fail (what is that but an authoritarian govt protecting Big Corporatism?) through lobbyists, policies and what not are wreaking havoc on our economy today in ways we can’t even fully register. The consequences reverberating through our political economy are well beyond the scope of what has befallen us thus far, and what we can imagine.
We live in interesting times yes, but, the times they are a changing. If we have learned one lesson from this crisis, how far can we trust Congress, the Treasury, the administration, the Fed, and their policies? When do they become a blatant liability if not already? Like it says on the US currency, “In God We Trust” it does not say “In Congress or the Fed We Trust.” I am supposing there is a good reason that is not printed on the currency. Conduct yourself accordingly.
September 27th, 2009 at 1:00 pm
Wow, I missed quite a thread yesterday out and about enjoying the gorgeous fall day here in Minny!
I have mixed feelings about this issue. This is undoubtedly a personal decision. You and your wife have to be comfortable with your going in front of Congress and potentially opening up your own personal life and background to vicious attacks. Don’t think for a moment that some in the powers that be wouldn’t comb through your entire background to dig up any dirt on you if they thought it could ruin you and your credibility.
However, I’m not quite sure why you would bother riling everyone up (including yourself) at your blog everyday about these very issues, and then shrink from the opportunity to do more about it than writing a book (and making money off of it)? What’s the point of all of the hand-wringing on this space and in your book if you’re just going to shrink when a real opportunity to do something about all of these issues presents itself? Are you merely just trying to demogogue the issues to gain more popularity for yourself and to make more money off them so you can hang in the Hamptons and bask in the glory of all your newfound fame and fortune? If that’s the case, then I’m sure you may lose some readers here at TBP over time who will likely lose some respect for you. A while back I posted the following when your stature was growing in the media: “Don’t forget about us little people, Barry.” I’m worried that you’re doing just that. As Sean Connery’s character in “The Untouchables” put it: “What are you prepared to do?” I think we all now know the answer. Not much, aside from some blunt (and often eloquent) bluster on this blog and in your book.
September 27th, 2009 at 2:08 pm
MA,
w/ September 26th, 2009 at 11:32 pm
as here, the same..
and, with that, may we, and, of course, yon’ Others extant, be Well.
September 27th, 2009 at 2:15 pm
I’m another new registrant who feels you’re missing out on a great opportunity. Please go to Congress and speak the truth.
September 27th, 2009 at 4:02 pm
MA
“The attitude is not characteristic of my comments. I don’t appreciate being labeled as being “infatuated” _ especially when the term is followed by a weak argument.
Of course gold is insufficient in quantity to be the medium of exchange. Gold-backed currency would cure the blatant fraud that is fiat currency. my primary argument against fiat is that fiat currency is a “unit” of nothing. How can anything be measured when the unit of measurement can be redefined by a single party at their whim?
Gold is elemental, relatively fixed in quantity, relatively scarce, non-reactive, cannot be counterfeited or created from less valuable (more plentiful) substances, and is universally accepted as having value.
I’d say the same for peanuts or seashells if they fit the same criteria.”
To call an argument weak you must first understand it. Obviously you do not. Gold is NOT a necessity, it is a luxury. Yes it has all the properties you describe which make it a good currency substitute but that does not mean it is something that will always be valuable. If things get as bad as most of the gold bugs are fearing only necessities will have value not luxuries. Anyone hoarding gold better hope that the world stays as orderly as it currently is or they will be holding something they cant eat and cant carry around easily.
Gold backed currency would do nothing to stop currency fraud. There was plenty of currency fraud prior to 1970.
You can blame our military industrial complex for the massive inflation and dollar devaluing we have experienced. Printing money to build bombs and guns has been the largest inflationary act in history. If we get back to producing instead of “reducing to rubble” we will restore some faith in our currency. Until then forget it .
September 27th, 2009 at 5:29 pm
Survey says!!!
Perhaps you should reconsider your decision.
Some opportunities only come around once in life. You have a chance to present you views to the only people who MIGHT be able to DO SOMETHING.
Unless you have a legal reason to avoid any scrutiny….and remember this is US Congress….most of them have a criminal record of some kind….you should do this.
If not you then whom??
September 27th, 2009 at 6:47 pm
Cursive, Buster beat Joe Frazier
September 27th, 2009 at 6:53 pm
Hey BR, if you decide to pass on the invite, can you pass it along to Charles R. Morris? He’s been awfully quiet since January or so.
September 27th, 2009 at 8:42 pm
That’s disappointing Barry….
You now have ZERO grounds to criticize any future Congressional actions in regard to this issue. You were given a chance that many people would cherish and you turned it down.
Handcuffs? Really…that’s your quasi excuse? Pathetic “excuse making” there….
Very disappointing.
September 27th, 2009 at 9:07 pm
I call a grammar foul on my self….
If not you than whom??
September 27th, 2009 at 9:17 pm
Most of us would positively kill for the opportunity to have our opinion at least heard by congress. Get yourself a good attorney and speak candidly but politely.
If you’re not part of the solution, you’re part of the problem.
September 27th, 2009 at 9:20 pm
Barry, what will it take for you to change your opinion? Seriously, this can only be positive for book sales, you can go viral on the web in video format, and people can start realizing you are not that Battipaglia guy! JK about that last part, but you should go to Congress and tell them what they need to hear.
September 27th, 2009 at 10:17 pm
We need the Congressional Record to contain a truthful testimony about the way things are. That way historians will have some juice when they chronicle the time when Capitalism was hijacked …
September 27th, 2009 at 10:47 pm
If anyone can give me a good reason to spend a day in DC testifying to Congress, I am all ears. I was unable to think of any; maybe the crowd has some special insight.
I ‘d say they did, at least 20:1; who loves ya’, baby?!
to gbgasser’s point..the military-industrial complex recycles the 150 Billion sent to OPEC on their gross W-2 as it were..do the math.. EIA stats are 6.9 million barrels per day to OPEC alone times $70 times 365 gives the seven sisters of Standard Oil 150 Billion in their cash flows..we fight to maintain the “relationships” with blood and debt and live to steal what they can behind the foreign curtain. Meanwhile if we had the National Will (look at the 1943 steel penny for a paradigm shift or re-boot), we’d be closing down the foreign crude purchases and immediately start sucking on the domestic natural gas hundred year reserves and be the free nation our Founding Fathers envisioned without foreign entanglements which gas could be firing in our existing engines with minor conversion fittings and controls..a carbueration/injection issue is all.
WTF not?!..I think you got it now.
September 27th, 2009 at 10:54 pm
Manny – Wow, wow wow wow. Very well said my friend.
September 27th, 2009 at 11:03 pm
I explained your decision and your reasons for it to Mrs Pat G. She has never posted a blog on anything in her life. Hell, she doesn’t even like computers. But she did come up with an apt quote; “the brave man dies but once, the coward dies many times”.
September 27th, 2009 at 11:30 pm
gbgasser:
Still weak. For me to understand an argument, a cogent argument must be made.
My comment isn’t about currency fraud, it’s about the basis for a currency being fraudulent. The “full faith and credit of the US government” doesn’t cut it. If things get as bad as your scenario calls for, no currency or unit of trade will be of value. The person or group with the biggest weapons and least compunction about using them will prosper (and I use the word “prosper” in a relative sense).
If you really want to argue, maybe you should answer some of the points I’ve made, instead of making assertions based on a hypothetical doomsday scenario.
September 27th, 2009 at 11:32 pm
Damien Hoffman Says:
“We need the Congressional Record to contain a truthful testimony about the way things are. That way historians will have some juice when they chronicle the time when Capitalism was hijacked …”
_________
Capitalism wasn’t hijacked – it was deregulated.
September 28th, 2009 at 6:23 am
If not you? Then who?
September 28th, 2009 at 8:03 am
wow 8am and no new thread heads for 21 hours … are you still out and about? or lining up the presentation?
….
ask for a white board and easel (doubles as screen / play by play) and your laptop & video-projector privileges
September 28th, 2009 at 8:06 am
pss … maybe you should be just as worried about the banksters
September 28th, 2009 at 8:48 am
…here is the concern…
Mr. Ritholtz, you come before this august body today and accuse it of negligence, incompetence and being the running dog lackey of the of the corporations and monied interests.
Now, Mr. Ritholtz, as you well know, there has been a financial crisis in America set off by a run on the shares of the major Wall St. banks and AIG. This crisis has caused the government to bail out these institutions at a tremendous cost to the taxpayer.
Mr. Ritholtz, I ask you, have you, your company Fusion IQ, or their clients profited from the fall of these institutions?
reply – Well, we recognized this was coming by careful analysis of the situation, and, yes we shorted the shares of some of the institutions, such as Lehman. This was prudent investment approach, and yes. very profitable to us and our clients.
So, Mr. Ritholtz, you admit to being a party to the demise of the major financial institutions and therefore, a cause of the bailouts – the bail outs of which you rail about. Is it not fair to surmise that you are at least partly to blame for this very crisis?
reply – but, your honorable congress person, the banks made the bad bets, we were just trading in the market place, for every buyer their is a sellers, err, its not our fault.
Mr. Ritholtz, have you not written a book titled Bailout Nation, that you have in turn profited from very nicely.
well, yes, but, but
That is all Mr. Ritholtz…..
September 28th, 2009 at 10:42 am
With regard to Fed vs Congress, at least Congress can put in crosshairs.
With regard to testifying, you’ve bluffed yourself out. Maybe we have less to lose than you, but I would gladly give up my freedom to have a forum to go in there and ream them a new one. Let them make martyrs (if it’s even possible in 21st Century USA). My only worry would be that, in trying to convey my point, my passion would not overcome my speaking skills.
September 28th, 2009 at 12:36 pm
“If not me, then who?”
Seriously Barry Ritholtz… you should go. I cant believe you arent jumping at the chance. Someone needs to go down there and speak the truth.
They havent asked me yet for some reason.
There is a higher reason that you have been asked. Embrace it.
September 28th, 2009 at 1:51 pm
To the Honorable Quant from New York,
You are a clear and cogent speaker, and although Congress may be worthless, you are not. You will be speaking to the nation (also the world and the future) at the same time you are testifying, and your testimony may be repeated on C-SPAN. Unlike your TV appearances, congressional testimony carries more weight with the public, especially with people who have not yet discovered you. You have an arresting ability to get to the point and inform. And your kids would be so proud!
To prepare, you could have a few facts in-hand about each member of the committee and how they have sold out the interests of the public, and at the appropriate moment you can respectfully point this out during your testimony. It’s a dream come true if you look at it that way.
If you address the consequences of extending trillion-dollar giveaways to the owners of the banks and refusing to regulate them, how can they continue to say that they had no idea? As the horrible results of government corruption and inaction are revealed day-by-day in the future, you will have the satisfaction of running video clips of your testimony to prove your point, which may spare us the insult of these insincere politicians claiming they had no idea what could happen, and that they had only good intentions.
If you testify, you may inspire other intelligent people to do so. Public awareness MIGHT lead to accountability, or keep a lid on future catastrophes. We can’t rely on Congress or politicians, so it’s the only option available. And it would be exciting for your fans if you testified. But I understand if you are reluctant.
September 28th, 2009 at 2:39 pm
I vote “do it”. Remember, a few people had to stand up to McCarthy – and then the whole tide turned against him. If you can be respectful but direct – you should do it. I promise to post the video on my facebook page!
September 28th, 2009 at 4:20 pm
MA
Your argument is that gold is somehow inherently more valuable than a fiat currency or that somehow a gold standard would make us more stable. I’m saying gold is just a shiny rock and any value it has is relative to our wants and needs. The doomsday scenario is only to illustrate that fact. Fiat currencies that are backed by stable, fiscally responsible, trustworthy and yes, probably heavily armed govts are the best and easiest forms of financial transaction. The problem is since the 80s we have lost almost everything except our heavy armaments. If we can regain the other three we’ll have an outstanding fiat currency.
I’m sure gold will always have value but the last thing any of us should want is for gold to become THE store of value.
September 28th, 2009 at 7:02 pm
Perhaps the final post on this thread regarding this subject. But there might be hope that your voice will indeed be heard and not fall on deaf ears. If you don’t go and stand up for yours and our beliefs, you will lose much creditability.
http://news.goldseek.com/RonPaul/1254161978.php