Can the SEC protect us from the scandalous behavior of Goldman-Sachs? Sure, they can fine the firm but Goldman-Sachs's misdeeds are inherent in the way business is done in our economy and will not go away.
Read on---There seem to be two seemingly intractable problems involved in solving our economic woes:
First. Making money the derivatives/gambling casino way is easy money--much easier than the Henry Ford way of large plants, massive work force, harnessing of natural resources --iron, coal, rubber. Currently, nearly half of corporate profits are made in the financial sector. The money men of today sit at computers and make millions betting on the price of oil futures, the housing market and even how long your mother-in-law might live. They are not going to be later day Henry Fords.
Secondly, Wall Street owns the government. If need be, banking billionaires run circles around a $400,000 a year president and the millionaire senators.
So, our bankers are addicted to easy money and they run the show. Now what? Like other addicted to easy money former financial powers --the Dutch, Spain and England--we're heading for tier two status. Which might not be so bad. It will give us a chance to become a kinder, gentler nation, one that takes care of its own, rather than trying to stamp out "evil" in the world.
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