Home
In this issue
April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review July 8, 2010 / 26 Tamuz 5770

The Wall Street ‘Revolt’ Against the Dems

By Larry Elder



http://www.JewishWorldReview.com | Here's The Washington Post's first sentence: "A revolt among big donors on Wall Street is hurting fundraising for the Democrats' two congressional campaign committees, with contributions from the world's financial capital down 65 percent from two years ago."

Wall Street, double-crossed! No more business as usual! The jig is up! Down with greed, up with financial responsibility! There's a new sheriff in town — and his name is Barack Obama!

The article acknowledges that many things explain the drop in contributions: "But the overwhelming factor is the rising anger among financial executives who think they have not been treated well based on their support of Democrats over the past four years." And "'Democrats worked hard to pass reform with tough oversight, accountability and regulation, and it's no secret the big banks were against it,' said Deirdre Murphy, spokeswoman for the Democratic Senatorial Campaign Committee. 'But we believe preventing another financial collapse is the responsible thing to do.'"

There you have it.

The finance guys are literally foaming at the mouth over the "tough" new financial regulations. Though Wall Street gave more money to Democrats than to Republicans — and therefore expected a slap on the wrist — the new rules put them in a straightjacket. Those !&!$ Democrats! They rammed down unpalatable regs — at the cost of The Street's profits — simply to prevent another financial collapse. But wait. Why not turn to the greed-friendly Republicans poised to swoop down, grab contributions and, unlike the principled Democrats, do The Street's bidding?

Nice try, WaPo. Now, here's what's really going on.

Banks' stocks shot up, not down, the day the proposed new financial regs came out. Why? If it wasn't quite a green light for business as usual, it was close enough. The Associated Press wrote: "After months of angst over the government's plans to regulate the financial industry, investors are able to relax. And they've showed their relief by sending bank stocks soaring. Financial companies have outdistanced the rest of the stock market (June 25) after lawmakers agreed on a banking overhaul bill that is less strict than investors feared."

CEOs tend not to "revolt" when the company stock goes up.

If Wall Street is so ticked off by the Democrats, shouldn't the supposedly resurgent Republicans prosper because of the supposed disillusionment over the Democrats? Fifteen or so paragraphs down, WaPo tells us: "Republicans ... have tried to reap the benefits, to mixed results. ... The two Republican committees that are focused on congressional races have received $2.7 million from the New York area, slightly more than at this point in 2008 but less than the $4 million they raised at this point in the 2004 cycle when the party still controlled Congress." Oh.

As for preventing another collapse, Fannie Mae and Freddie Mac — the "government-sponsored entities" primarily responsible for the housing meltdown — are now completely taken over by government. They own or guarantee 40 percent of the country's mortgages — which they bought from institutions, repackaged and then resold, with an implicit guarantee by the federal government against default.

The Community Reinvestment Act mandated lenders to grant loans to otherwise unqualified buyers. It remains on the books. And the Federal Housing Administration continues to back loans taken out by home purchasers who otherwise would not and should not be able to purchase homes.

Wall Street can therefore continue to pass along the damage done by its risky behavior to the taxpayers. It fulfilled its version of the Hippocratic oath: Congress, do us no harm. The regulations prevent no practice that a few sharp accountants, lawyers and traders haven't already figured a way around.

The Democratic spokeswoman asserted that "it's no secret the big banks were against (the regulations)." Really? The proposed regulations preserve the options for bailouts of institutions considered "too big to fail." And some firms are bigger now than ever. Reason Foundation's Nick Gillespie says: "One of the major reasons why financial institutions played Russian roulette with the economy was because they were betting they would get bailed out. Which is precisely what happened. The new rules codify the idea that the government will make sure certain institutions can never fail. And if you think the big boys won't game that system, then you don't understand how well Citigroup, Goldman Sachs and others have come through the current meltdown."

How do the new regulations hamper Wall Street? Regulations, in general, tend to fight yesterday's war. Financial services, like everything else in this digital age, are in a constant state of innovation and reinvention. The new regulations will induce new financial products and new ways of doing business unanticipated — if not caused — by Congress in its attempt to "rein in bad practices."

To reduce the possibility of a future meltdown, Congress could have forced the players to play with their own money by shutting the escape hatch of government guarantees and bailouts. It did not. Pass the Champagne.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

JWR contributor Larry Elder is the author of, most recently, "Stupid Black Men: How to Play the Race Card--and Lose." (Proceeds from sales help fund JWR)

Let him know what you think of his column by clicking here.

Larry Elder Archives

© 2006, Creators Syndicate

Columnists

Toons

Lifestyles