To Big To Jail

[samplegirl]

David Corn and Kevin Drum



January 8, 2010

America's big banks are back on top. Just a year after their financial gambles brought the American economy to the brink of collapse, requiring a massive federal bailout, they're back in the black and paying themselves healthy bonuses. With so many Americans facing economic hardship, the banks' good fortunes have led to resentment and even some rage among those outside the financial industry. Yet, according to Washington watchers — and sheer dollars spent — the banking industry lobby remains among the most powerful in the nation's capital.

The latest issue of MOTHER JONES magazine looks into this discrepancy, calling it the "accountability deficit." The magazine commissioned a series of articles investigating why no one has been brought to account for crashing the economy.

Two contributors to the issue, David Corn and Kevin Drum, join Bill Moyers on the JOURNAL to explain how the banking lobby continues to hold so much power in the nation's capital.

http://www.pbs.org/moyers/journal/01082010/profile.html

While the great wealth of Wall Street allows it to lavish campaign contributions on Congress, it is not money alone that gives the financial industry so much power. The influence of Wall Street has managed to change the national conversation. MOTHER JONES political blogger Kevin Drum explained the phenomenon using a term used by economist Simon Johnson:

It goes beyond regulatory capture, where, say the banks control the S.E.C. That's one thing. "Intellectual capture" means that essentially the financial industry has convinced us — you know, in the '50s what was good for General Motors was good for America — now it's what's good for Wall Street is good for America. And they've somehow convinced us that we shouldn't ask about what's right or what works or what's good for America. We should ask what's productive, what's efficient, what helps grow the economy.
It is this "intellectual capture" that prevents a reform movement from taking hold. David Corn, Washington bureau chief for MOTHER JONES, explains:
While angry at Wall Street, particularly on the corporate compensation front — which is very easy to get angry about — they also are fearful of taking Wall Street on, because they've been taught that if the Dow falls, if you take on the big banks, it's going to be bad for all of us. So, it really is this "Stockholm Syndrome," where we're forced to identify with people who are holding us hostage without our interest in mind.
The money, though, plays an important role. Corn notes that the fundraising system itself is a barrier to reform, "I mean, our whole system where the guys in charge of regulating or writing the laws would take cash from the people who want favors, you know, it's kind of, you know, bizarre to begin with."

And though members of Congress deny their donors don't influence their decisions, Drum is doubtful. Citing Senator Chuck Schumer's fundraising, Drum argues, " raised a couple hundred million dollars, a lot of it from the financial industry. And that went to all Democrats. Not just Schumer. It went to all Democrats who were running for the Senate. Well, there's no way you can take that money and not at least be leaning in their direction, one way or another."

[midnight]

1. The one thing that seems to work seamlessly, in Washington, is the flow of money...

Let's get the money into the hands of the working people..... Let's move into out of the hands of the fat cats...

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2. Nothing will ever get better until this vicious cycle stops

America does not seem to understand this.