The phrase “drain the swamp” can be traced back as far as 1830 but has frequently been used since the 1980s by American politicians .
Since the 2016 presidential election the old phrase “drain the swamp” has taken on a whole new meaning and brought to light that perhaps there are two swamps in Washington. As an aside, the phrase in question does not mean a literal swamp, which are actually environmentally valuable ecological wetlands, but refers to the skullduggery that goes on in our nation’s capital.
The two swamps in question are: the White House (WH) centric one and the one most of us are familiar with in reference to the shady dealings among our elected representatives especially when it comes to lobbyists. Continue reading →
Many, including this blogger, have become upset and outraged as the investigations into the financial debacle continue to come to light through ongoing congressional testimony, books and in the media. Not only have we seen a complete failure of our regulatory system, failures at the rating agencies but we are seeing what can only be considered fraud perpetrated by the investment banking community. What is most troubling is that none of those responsible for regulation have been fired nor has anyone at the rating agencies or investment banks been prosecuted. Perhaps this will come when the final congressional reports are in later this year.
The contents of this post will eventually, soon, be formulated in a letter to the President and my representatives but I thought that I would pass it by you, dear reader, first.
American citizens are rightfully upset at the behaviors in the financial markets and businesses that put our economy in near collapse and resulted in massive government bailouts, bailouts that sent a message to the banks that profits were to be privatised and risk was to be socialized. In this environment there is little to no incentive for banks to mend their ways.
The belief in the bankers and the market as espoused by Alan Greenspan was by his own admission wrong.
What is needed is new regulation and a restoration of some controls that were repealed in the misguided belief that free markets were self-regulating. Among the regulations that should be strongly considered are the restoration of Glass-Steagall, the total elimination or strict regulation of financial derivatives and credit default swaps (CDS), and a complete rework or elimination of the rating agencies. Continue reading →