Monday, March 15, 2010

The Unholy Alliance: Washington & Wall Street


If you failed to see 60MINUTES last night here is a link supplied to me by Butch, one of MONEYTHOUGHTS' followers.

http://www.cbsnews.com/stories/2010/03/12/60minutes/main6292458.shtml?tag=contentMain;cbsCarousel

I have read a good deal of Michael Lewis' work starting with his first book Liar's Poker from the late 1980s. I hope to get his newest book that he mentioned on 60 MINUTES last night. I did catch the show last night and enjoyed seeing someone talk about the same issues I have been writing about in my blog for the last two years. Unfortunately, as I read in the Sunday New York Times, blogging is something done mostly by women and MONEYTHOUGHTS is not exactly what women are looking for in a blog. I don't nurse and never have.

When Michael Lewis was asked what needed to be changed, the first words out of his mouth were about the credit rating agencies. He knows this and I am sure there are others out there in a position to do something, politicians, that know this too.

After listening to Michael Lewis last night and thinking about what he said, I have come to the conclusion that little is going to change until there is a seismic revolution in this country. The unholy alliance between Wall Street and the politicians in Washington maintains the status quo. Without a change in the operation of the credit rating agencies, we are all headed back down the same road to disaster again. Without serious and comprehensive reform of the capital markets and banking, the seeds for another financial panic are already in the ground and germinating.

Stay tuned.

7 comments:

winslow said...

Take a look at the last part of Jim Cramer's show from Friday.... occasionally he has some great ideas.
He discusses the on-going investigation set up by the Obama administration to dealve at the cause of the financial nightmare. He cites some of the current CEO's that are being interrogated under oath that have NOT been at the forefront of being unethical in their businessess. But, he gives a list of approx. 10 former CEO's that are definitely associated with unethical business practices THAT ARE NOT BEING ASKED TO TESTIFY UNDER OATH ABOUT WHY THEY CONDUCTED THEIR BUSINESS A CERTIAN WAY.
Cramer said he, himself, is willing to testify about what and who is involved in the financial collapse. He had mentioned in the past his dealing with some of these individuals that bordered on illegal and completely unethical.

My question is: Why isn't Obama pursuing the truth?

I think you have answered this

LceeL said...

I missed 60 minutes last night - I most most of TV last night - I was out meeting bloggers all day. That said = perhaps the 60 Minutes thing will be the start of recognition of hte problem with the CRAs. Hope so.

Butch said...

I'm glad you liked the piece and I figured you would. I liked some of the comments below on the website. I have actually watched it twice and glad I did. I missed some things the first time around.

As far as why the Obama admin. isn't going after these guys, well, lets see. T. Geithner might be some of the reason. Read this, it is just another issue with the treasury. http://www.buffalonews.com/2010/03/14/987305/delphi-retirees-feeling-frustrated.html
With all the news media types and republicans as well as democrates asking, if not demanding, answers to concerns and getting absolutely now where, how do you think the big boys on Wall Street are going to fare. They will just make more money and more excuses and point the fingers in all directions. I would assume that with the finger pointing that they do, they would even be able to make a GPS device go nuts.

moneythoughts said...

Winslow: Why isn't Obama pursuing the truth? There are a couple of reasons that come to mind.

First and foremost, politicians are not going to bite the hand that delivers so much cash to their campaigns. Ask Senator Chuck and Hillary from New York State how much money they rake in from Wall Street types? There is your answer to the biggest piece of the question.

Second, Obama has hung his presidency on Health Care reform, period. This is something he can change and he is dead serious about that.

People in general will have to get smarter about finance and the frauds that are going on before the average politician will sit up and take notice. That is my opinion.

moneythoughts said...

Lou, I hope so too. But I think the people that can change the way business is done on Wall Street with regards to the CRAs know that a conflict of interest exists already. Where is the incentive to bring about change? Where is it going to come from? My opinion is that if another crushing blow hits the general population of the country financially within a short period of time, that a revolution may occur. That might be what it takes.

moneythoughts said...

Butch, if they take a chapter from Law And Order and put all the bad guys, CEOs, in separate rooms and they offer a deal to the first one that talks, I think you would get a dozen or so volumes in print. The frauds continue and as long as those frauds go unpunished, because it is legal to steal without using a gun on Wall Street, we will see more of this in the future.

Julie Schuler said...

I don't watch any of those news programs- I know you'll catch me up on everything I need to know.