The same Washington spinsters who have driven our country into the ground seem to be out in full force this morning, claiming that their latest policy “victory” is the most “sweeping change” of our financial regulatory since the Great Depression.

Actually, it is nothing more than window dressing.

The real sweeping change of our financial system took place over the past 20 years. The irresponsible repeal of Glass-Steagall in 1999. The Commodities and Futures Modernization Act of 2000 by Larry Summers and Bob Rubin — the one that legalized the most destructive financial instruments of all, derivatives. The leverage exemption at the SEC in 2004, asked for (in person) and received by Hank Paulson and friends.

Of course, there are small victories here — there is better investor protection and, most importantly, an awakened citizenry.

What’s not fixed?

- The Cops (regulators and ratings agencies) working for the crooks.

- Banks still Too Big To Fail.

- Banks gambling with your deposits.

- Banks allowed to “mark to myth” and use off-balance sheet accounting to bonus themselves into the atmosphere, with the taxpayer taking the fall.

- Banks getting trillions from the Fed, Fannie and Freddie — AKA you, the future and present taxpayer.

What does it mean for us?

It means that the same people who brought you these horrible changes — rising wealth discrepancy, massive unemployment and a crumbling infrastructure – have now further institutionalized the policies that will keep the causes of these problems firmly in place.

Meanwhile, all involved in the facade try to pretend that this should be considered a success because, gosh, real financial reform is just too hard and those crafty banksters will just outsmart us anyhow. Many in the media are either too complicit, too confused or too lazy to contradict this spin, but the rest of us shouldn’t buy that BS. Real and lasting financial reform is actually quite easy to implement — and the last time we had a crisis of this magnitude, we kept the banksters in check for 70 years.

Time and time again in America, they don’t win — we do.

And I believe as we head towards election time with leaders whose only plan for creating new jobs is a few more workers manicuring soon-to-be even bigger Bankster bonus-fueled estates coupled with a few more government handouts, this lesson will be learned once again.

Category: Regulation

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

27 Responses to “Wall Street Reform: Politicians Lie, Media Applauds, America Suffers”

  1. Mannwich says:

    Amen Dylan. Keep pounding that drum.

  2. MaxLdaMan says:

    The politicians have been bought and sold, and the media is driven by a megalomaniacal Australian who couldn`t care less about America or Americans. Keep pounding the drum, but you’re being drowned out by the big money.

  3. TakBak04 says:

    Thanks Dylan….We Hear You! Don’t have a Bull Horn ….but WE HEAR Ya!

  4. franklin411 says:

    The New Deal regulatory structure protected America for 70 years until it was scrapped in the late 1990s. It was not created by one or two huge laws that sought to fix “everything.” Rather, it was erected one step at a time; one bill at a time. The first New Deal financial reform bill was the Emergency Banking Act of March 1933. It was far from the last.

    The same will be said of this bill.

  5. FrancoisT says:

    You really believe Congress will keep producing financial reform bills until the system is safer?

    I have my doubts. There is just too much money and lobbyists around.

  6. franklin411 says:

    This is it till November. Then we’ll see. Perhaps we’ll have another Republican Congress as we had from 1994-2006. If that happens, then I think we can count on having a financial system that is every bit as sound as the one that gave us our prosperity today.

    /sarcasm off

  7. crunched says:

    Well, well said. Dylan for President.

  8. Daffyorbugs says:

    Sadly, I don’t think this will end without quite a bit of violence. Until the cop realizes he’s beatin’ on his mom.

  9. Joe Friday says:


    * Just today, from The Economist:

    “Indeed, the new consumer bureau potentially creates another monster. Nor does it tackle the future status of Fannie Mae and Freddie Mac, to the chagrin of Republicans, who rightly view the two mammoth mortgage agencies as having played a leading role in causing the financial crisis.”

    * And from CBS News correspondent Chip Reid:

    “the bill fails even to address the mortgage giants Fannie Mae and Freddie Mac, whose bad practices played a central role in the financial collapse.”

    [CBS Evening News]

  10. adamsvictor says:

    I find something disturbing in an economy like ours where more money can be made by moving capital around than by MAKING or PROVIDING some good or service-respectively- of value to the society. Bill Gross defines our economy (as well as UK”s) as a financial economy as opposed to China’s (or Germany’s or Japan’s to a lesser extent) industrial economy. Not that I’d like at any point to emulate China’s state capitalism and Communist regime, no way!!! But for Christ’s sake, the financial services sector of our economy is waaaaaaaaaaaay to large, it needs shrinking and the slack taken by REAL industries, drilling anyone (but please no spills..)

  11. Nic says:

    Thank Dog for Dylan

  12. Arequipa01 says:

    Jeebus, Dylan, crossing swords with Donnie Deutsch on Morning Joe, going tieless, railing against the Man…all on a Friday, no less. What is your deal*? Joe Cassano called and wants to know when you are flying down to Bolivia to hang out with Evo Morales. What shall I tell him?

    *Is that you recognize that the goal is to immiserate everyone (90%) in the country?

  13. stonedwino says:

    Dylan, Great piece. Keep up the good in questioning and fighting the current status quo, which is of no real benefit to the people, nation, environment and the world at large. I love your attitude and chutzpah…wish we had more like you in today’s MSM.

  14. donna says:

    We can’t just depend on the legislators — get your money out of the banks, encourage others to do the same. Push for reform of the lobbying system as well, and vote for those who have proven themselves to be on our side and not the banksters.

    This is our responsibility, and just whining that the rich have gotten their way again is not the answer.

  15. Carse says:

    I don’t know about better investor protection, considering everything else listed here.

  16. philipat says:

    As an alien ;-), I still don’t understand how this could have happened to the United Corporatocracy of America. Does nobody understand or care about anything beyond the price of Cheesy Twirls in WalMart?

    Pitchforks anyone?

    Nice one Dylan. CNBC will be relieved that you are someone else’s “Problem”!!

  17. lalaland says:

    Well, everybody, this doesn’t have to be the end of financial reform just because they passed a massive regulatory bill – it can be amended in the future, perhaps when legislators are a little less under the microscope and a little less up for re-election.

    If we are as serious about reform as we claim we are – after all, we complain about Obama/congress/wallstreet dialy right? – we have to keep the pressure on the government to fix things. We have to demand better corporate behavior from our corporations. If this legislation isn’t good enough demand better of wall street, and of government. Put social pressure on the corporations that evade proper taxation or responsibilities or regulators asleep at the wheel.

    A lot of what went down over the last 10 years could have been prevented if the same self-righteous citizens who call for the heads of government and wall street weren’t so busy electing people who promised to remove the government ‘interference’ with business. And amazingly, those same people are posed to regain power very soon. So our stupidity and obtuse pride will pay dividends, and we deserve what we get.

  18. cheese says:

    “It means that the same people who brought you these horrible changes — rising wealth discrepancy, massive unemployment and a crumbling infrastructure – have now further institutionalized the policies that will keep the causes of these problems firmly in place.”

    I wonder……….what form do these politicians take that will actually propose such changes?

    I posit……..wouldn’t citizens be better off being 100% cynical of everything and everyone than relying on elitist cynics who manipulate them to keep and their stakeholders in power……….no, getting more power?

    This madness of trying to alleviate any and all risk only entrenches the elite? It makes them safer.

    When will people finally give up on this hokey notion that the state is actually trying to protect you?

    Only pure competition…………….in all its ugliness will condition society, yes, over time………….and without a tourniquet, or two to practice business honestly, openly, and YES!….fairly.

    I know I won’t see it………

    But, how long have the helicopter-parent politicians been promising you the same thing…………year after year after year………….and what is your reward? More loopholes, more time wasted, and more capital spent trying to unseat them.

    So, by all means…………….MORE REGULATION!

    what have you got lose?

  19. holulu says:

    Dylan do not stop and keep informing Americans.
    At least there is one person (Dylan) who has integrity to speak the truth, and honesty not sell himself to big money.

    I often say that the rarest commodity in the world is not gold, diamond , etc. it is “integrity”.

  20. d4winds says:

    The most important casualty of the great financial crisis was not the economic recovery, which would have been anemic in any instance since the recession is a balance sheet one, but the political discourse over what meaningful financial reform might be. The first casualty is still with us and will be for a long time to come but is at least not per se permanent; the second, alas, is; for, we have by this last bill managed to institutionalize the arrangements and their responses which led to the GFC in the first place.

  21. bergsten says:

    Unarguable content aside, you are certainly in the running for the most links in a single post.

  22. [...] Hier traut sich anscheinend jemand, die Wahrheit zu schreiben (Dylan Ratigan @ The Big Picture) [...]

  23. SteveC says:

    Amen. Until everything around us comes crashing down (which it will), real change is hard, and we lack great leaders to do the right thing. Consider all the ineptness and criminal activity in the banking sector over the last 15 years, yet no one goes to jail. Astounding.

  24. Patrick Neid says:

    Dylan naming names. Maybe there is hope.

  25. wunsacon says:

    Good piece, Dylan. (Sorry, I did not read the byline earlier. )

  26. Rescission says:

    More regulation leads to more Crony Capitalism.

    “The problem with more regulation is that the Industrialists end of taking it over”
    – Milton Friedman

    We think more regulation fixes things. It sounds good and plays to emotions. When in fact, long term, it has the opposite effect: Less competition, more crony capitalism, protection of the monopolies. Free markets are needed.

  27. cheese says:


    Lets make a law!

    Everyone MUST act with Integrity!

    We just saved the WORLD!!!!!!!!!!!!!!!!!!!!!!

    It’ll be easy!

    Just appoint an integrity Czar!

    None of that silly red-tape for the executive branch!

    Decree it! And it shall set you free!