Milquetoast. Far-ranging and radical steps are needed to reign in a financial system run amok. The current financial system is arranged to benefit the financiers, not economic activity. "This country is moving to a world where we're no longer making anything," says John Bogle, founder of Vanguard. "We're merely trading pieces of paper, swapping stocks and bonds back and forth with one another, and paying our financial croupiers a veritable fortune."
Radical solutions are called for. The first is to replace the privatelyowned and operated Federal Reserve System with a publicly owned CentralBank. One needs only look at the Fed record to conclude it has been theculprit in the vast majority of the scandals, depressions, recessionsand crisis over the last eighty years. They include but are not limited tothe Depressions of 1921 and 1932 , the S&L crisis , the crash of '87 and2001 and the current Subprime Crisis.
The second is stiff regulation. What happpened at CitiGroup? Theyemployed the same off-balance sheet bookkeeping as Enron! It is onlythrough tough regulation like Glass-Steagall that transparency can beenforced. We must reregulate. The SEC and FASB must be given the mandateto uphold the rule of law and not subject to the corruption of aCongress wed to the financial industry.
Our once admired and emulated financial system is now discredited anddenounced. Only through sweeping financial and banking reform will wenot face another financial debacle. Only through sweeping financial andbanking reform will we regain any semblance of trust in our financial system.
Dec 2 2007 - 7:04pm