
It's been a long time
I shouldn't've left you
Without some lines about
My grind and what the stress do
Think of how many weak posts you read through
Time's up
I'm sorry I kept you
Thinkin' you're pissed
You don't know reading like this
The work of the law school soloist
And you sit by the internets
Hand on the mouse/Soon
As you read this
Increased post volume
Apologies to Rakim. I think the point is that I am in the midst of finals, so posting will be light.
...But not light enough to miss a chance to continue shouting about financial reform. Two worthwhile pieces of writing which I submit for your consideration. First, Bethany McLean is right that while the anger directed toward Goldman is justified, people also need to be angry at the federal government:
But it was the purported regulators, including the Office of the Comptroller of the Currency and the Office of Thrift Supervision, that used their power not to protect, but rather to prevent predatory lending laws. The Federal Reserve, which could have cracked down on lending practices at any time, did next to nothing, thereby putting us at risk as both consumers and taxpayers. All of these regulators, along with the S.E.C., failed to look at the bad loans that were moving through the nation’s banking system, even though there were plentiful warnings about them.There should be enough hostility to go around. But not the generic populist rage which so many people indiscriminately point in various directions at various times usually for lazy or misguided reasons. How about being mad at banks for intentionally violating fiduciary duties and then having the temerity to take your money while insisting that their greed was good for everyone else. And how about being mad at the federal government--Democrats and Republicans--not only for enabling the crisis, but also now for failing to insist upon rigorous and swift reform despite the harrowing empirical evidence that seems to engender urgency in nearly every other informed observer without a conflicting interest?
More important, it was Congress that sat by idly as consumer advocates warned that people were getting loans they’d never be able to pay back. It was Congress that refused to regulate derivatives, despite ample evidence dating back to 1994 of the dangers they posed. It was Congress that repealed the Glass-Steagall Act, which separated investment and commercial banking, yet failed to update the fraying regulatory system.
It was Congress that spread the politically convenient gospel of home ownership, despite data and testimony showing that much of what was going on had little to do with putting people in homes. And it’s Congress that has been either unwilling or unable to put in place rules that have a shot at making things better. The financial crisis began almost three years ago and it’s still not clear if we’ll have meaningful new legislation. In fact, Senate Republicans on Monday voted to block floor debate on the latest attempt at a reform bill.
If you're having a hard time getting sufficiently pissed off, read this:
Hedging as a general strategy is fine. But deliberately constructing specific securities that you believe will implode, and then selling them to your clients as great investments is not so fine. According to the Senate subcommittee investigating Goldman, that's what they did on five different CDOs they issued in 2006 and 2007.Rise up, people.
Apropos of nothing else in this post, enjoy this. Just because.
- Bill Cosby, Martin's Funeral





















