Well... I reviewed the same Ag Committee hearing from Tuesday which C-Span has rebroadcast now several times.
In particular I was attempting to find an answer to an often repeated question from the small gaggle of attending sub-committee members: Why do we need... what benefit is derived... from such abuse prone and economically dangerous derivative products?
I am still amazed at the utter lack of an actual response to this simple request. Moreover, the reaction from the legislators suggests to me that they may not even be aware that this question remains unanswered.
Frankly I think there's as much chance of Congress preventing the next bubble mania today as there was in the 1932 Congress which adopted the original SEC Act. Actually less... considering the fact that the current mess is several layers of fraud and obfuscation deeper, and thus more difficult to understand, than it was in 1932. Moreover the action of the Swiss today in buying up all the derivative crap UBS might care to offer them in exchange for $US60B (apparently Credit Swiss rejected the offer... for now), also indicates to me that there will be no help coming over the oceans to assist our "free market" educated Senators in the task.
I am... to put it mildly... depressed. We have created an economic system in which casino gaming is now the driving force. While the cretins of the Depression era were railing against the Evils of Government and taxation, they were empowering the Banker/Broker element of society to gain control over our national identity, prospects and lives.
I am afraid that we are about to see a few unlucky CEO's, Directors, accountants, rating agencies, and yes politicians sacrificed on the alter of Financial Manipulation, only to see the systemic "Robber Baron" rot and fraud which they re-packaged and updated from the dust bins of the 19th century, become institutionalized and white washed with a fresh coat of "free market" dogma.
Don't be fooled. This may indeed keep the chicken in your pot for now. But if they don't effectively prohibit the business of making entirely illusory profits out worthless financial "engineering" crap, and move most of the real capital and human resources now wasted on such useless and damaging schemes; by the time your grand kids sit down for a meal... the menu will be limited to worms, bugs and tuberous roots bearing little resemblance to the once valued potato.
Neither "Big government/taxes"... nor "Little government/taxes" kill economies. It is ignorance and delusion that kill economies and separate fools from their money. Remember the NYSE/NASDAQ/CBOE when they hand the keys to the Derivative Kingdom over to CME, ICE or whatever "self-regulated" pimp/pit boss is chosen to run their newly "institutionalized" game.
As best I can tell armed bank robbers have more moral authority... and a hell of a lot less moral hazard... than any human beings engaged in a financial services business. Their only "sin"... apparently... is just not paying a large enough return on capital.
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